Former Chelsea owner Roman Abramovich has failed in a bid to overturn European Union sanctions relating to Russia’s war in Ukraine.
The Russian-Israeli billionaire had funds frozen and entry into the EU blocked in March after Russia invaded Ukraine on February 24, 2022.
Abramovich was sanctioned by both the EU and the UK in March 2022, which led to his sale of Chelsea. Todd Boehly and Behdad Eghbali’s consortium completed the purchase of Chelsea on May 30, 2022.
Abramovich had lodged an appeal with the European Courts of Justice over his EU sanctions, but that has now failed.
The court upheld the original European Union Council decision to sanction Abramovich, in a judgement released on Wednesday.
Abramovich was however pleased that the court rejected assertions that he has benefited financially from the Russian Government.
“The Council did not in fact err in its assessment by deciding to include then maintain Mr Abramovich’s name on the lists at issue,” read the court judgement.
“The General Court of the European Union dismisses the action brought by Mr Roman Arkadyevich Abramovich, thereby upholding the restrictive measures taken against him Mr Roman Arkadyevich.
"Abramovich is a businessman of Russian, Israeli and Portuguese nationalities. He is, in particular, the majority shareholder in the parent company Evraz, one of the leading Russian groups in the steel and mining sector. That sector provides a substantial source of revenue to the Russian Government.”
Abramovich has been involved in peace talks between Russia and Ukraine since the conflict that had been running since 2014 escalated in February 2022.
The £2.5billion proceeds of the Chelsea sale are due to be utilised for a charitable aid foundation for victims of the Ukraine conflict. Those funds remain frozen in a UK bank account however, amid continued disagreement between Abramovich and the UK Government about how the money should be spent.
Abramovich and the independent staff lined up to run the foundation want the money to aid all victims of the Ukraine conflict, then broaden to all conflict in future. The Government wants funds to be used exclusively in Ukraine.
A spokesperson for Abramovich said the former Chelsea owner was disappointed in the failed EU appeal, but satisfied with several distinctions drawn.
“Although we are disappointed with today’s ruling, we welcome that the court did not take up several arguments presented by the EU Council and did not include them as a basis for maintaining sanctions,” they said.
“This includes the proposition that Mr Abramovich has benefitted financially, or in any other way, from the Russian Government – such suggestions are false, and the EU Council failed to present any evidence to this respect.
“It is also important to remember that the sanctions imposed on Mr Abramovich were never justified by a direct connection to the war, and no such arguments were presented by the EU during the court proceedings.
“Mr Abramovich does not have the ability to influence the decision making of any Government, including Russia, and has in no way benefitted from the war.
“The Court’s decision to maintain the sanctions against Mr Abramovich were based purely on the Court defining Mr Abramovich as a ‘Russian businessman’, which under today’s very broad EU regulations is sufficient to remain sanctioned, even if you are just a passive shareholder in a business sector with no connection to the war.
“Mr Abramovich’s lawyer will evaluate today’s judgement in full to provide recommendations on possible next steps.”
