Almost exactly three years later, the famously reticent plutocrat – widely regarded as perhaps Russia’s most high-profile oligarch – remains an elusive figure and a name at the heart of the debate the effectiveness of efforts to slam Britain’s doors in the face of those regarded as close to Vladimir Putin with repeated salvoes of sanctions.
Despite Abramovich’s pledge in March 2022 to put the £2.5bn he netted from his disposal of the Premiership side into an independently-administered fund to help “all victims of the war”, the money remains stranded in a Barclays bank account amid wrangling between the Government and the administrators of the putative foundation over where it can operate.
Campaigners told The i Paper it was baffling that the funds, which could help Ukrainians enduring their third winter of Russian attacks and privation, remain in limbo.
It is a high-profile dispute which, however, relates to just one part of a vast array of assets – from the Westminster penthouses and Mayfair mansions of oligarchs to bank accounts owned by the Russian state – currently being held in limbo in Britain as a result of the international sanctions regime designed to hobble the Russian economy and interfere with the globetrotting lives of the Kremlin’s gold-plated allies.
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Various attempt to bring further pressure on around 1,800 Russia-linked individuals who are the subject of UK sanctions remain under consideration but have mounted to little.
Similarly, proposals to introduce a voluntary scheme for those subject to sanctions to surrender their assets in return for removal from the proscribed lists have not progressed.
Lord Hermer, the attorney-general, has been criticised by some in government for allegedly holding up plans to seize Russian assets by warning ministers it could leave the UK at risk of breaching international agreements on property rights and Russia’s sovereign immunity.
US sanctions easing could put pressure on UK
It is already the case that behind the scenes, Britain has continued to trade legally with Russia, albeit at a fraction of the level prior to the Ukraine invasion in February 2022. Last year, the UK exported goods and services worth £1.4bn to Russia, while imports coming in the opposite direction were worth £467m.
It was reported this week that the Trump administration has instructed officials to draw up a list of sanctions that could be eased unilaterally as part of the US engagement with the Kremlin. Sources told Reuters that these include curbs on entities and individuals, including some oligarchs.
But the question is also being raised – quietly – of whether oligarchs like Abramovich and others considered by the UK authorities considered to be close to the Kremlin, including aluminium magnate Oleg Deripaska, who once entertained George Osborne and Peter Mandelson on his yacht, could be allowed to discretely sell off their British assets – if not return outright to the streets of Knightsbridge and beyond.
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The source said: “I think Moscow will be most interested in relief from sanctions targeting energy and banking. But it may well be that there are some within the oligarch class who are close to Putin and are in Russia that they may be lobbying the Russian government to have their Western assets included in any fall-out from a peace deal.”
The source added: “Where the UK sits in this is super interesting. Historically of course it has been the UK position to align itself closely with Washington and, by and large, I think we can expect the British government to act consistently with the United States. But it is very difficult indeed to predict how that might play out.
‘Londongrad is finished’
Campaigners agree the UK may come under pressure from the Trump administration to follow suit should it offer to ease the economic noose around Moscow – but that any such move would have disastrous implications.
She said: “It would be a real mistake if the US, UK and allies lifted sanctions, whether it be the embargoes on oligarchs or on central banks, in a way that ends up giving some sort of free pass to Putin.
Despite the prospect of a softening sanctions regime, Abramovich’s chances of making good on his desire for one last visit to Stamford Bridge continue to look remote.
“I think it’s fairly sure you won’t hear much Russian being spoken in the Chelsea boardroom, or anywhere else, any time soon.”
Frustrations over frozen assets
The Chelsea billions offer a glimpse of the challenges that surround putting funds surrendered or seized to work in aid of Ukrainian victims.
Speaking almost a year ago, then Foreign Secretary Lord Cameron, told Parliament that the failure to enact the desire of Abramovich, whose mother’s family originated from Ukraine, for a “foundation for all the victims of the war in Ukraine” was “immensely frustrating”.
It is understood the sticking point remains a desire on the part of those setting up the foundation for part of the funds to be spent outside Ukraine in places such as African countries impacted by fluctuating grain prices as a result of the war. The UK government, which is required to grant a licence before the foundation can be established, is clear that all the money must be spent in Ukraine.
The Foreign Commonwealth and Development Office did not respond to a question about when it had last engaged directly with Abramovich or his representatives over the fund.
A spokesperson said: “This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible… UK officials continue to hold discussions with Mr Abramovich’s representatives, experts and international partners, and we will double down on our efforts to reach a resolution.”
Neither those in charge of setting up the foundation nor Abramovich’s representatives responded to questions about the impasse over the establishment of the charity.
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