Chelsea owner and Russian-Israeli billionaire Roman Abramovich has been sanctioned by the British government and his assets frozen.
It comes as the UK toughens its sanctions on Russia and Russian individuals with assets in the country amid the continuing invasion of Ukraine.
Mr Abramovich is among seven oligarchs targeted by the UK in a hit worth an estimated £15 billion - the latest wave of financial sanctions imposed by the UK. Abramovich's one-time business partner, leading industrialist Oleg Deripaska has also been sanctioned.
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The sanctions were announced today by Foreign Secretary Lizz Truss who stated there is now a full asset freeze and travel ban on seven of Russia's wealthiest and influential oligarchs whose business is linked closely with the Kremlin.
In response to the measures, Prime Minister Boris Johnson said: "There can be no safe havens for those who have supported Putin’s vicious assault on Ukraine.
"Today’s sanctions are the latest step in the UK’s unwavering support for the Ukrainian people. We will be ruthless in pursuing those who enable the killing of civilians, destruction of hospitals and illegal occupation of sovereign allies."
Liz Truss echoed the Prime Minister's words, saying: "Today’s sanctions show once again that oligarchs and kleptocrats have no place in our economy or society. With their close links to Putin, they are complicit in his aggression.
"The blood of the Ukrainian people is on their hands. They should hang their heads in shame. Our support for Ukraine will not waver. We will not stop in this mission to ramp up the pressure on the Putin regime and choke off funds to his brutal war machine."
But what does it mean when a person's assets are frozen - and what do the sanctions against the Chealsea owner mean for the sale of the club?
What happens when assets are frozen?
An asset freeze prevents a person or business from dealing with any funds or economic resources which are owned, held or controlled by the person targeted by the freeze.
The individuals are also prevented from having funds or economic resources - non-monetary assets, such as property or vehicles - delivered. They are not allowed to benefit financially from them.
The sanctions say that jets and yachts in the UK owned or chartered by Mr Abramovich, who is worth about £9.4 billion, can be detained.
The freeze on his property means he can’t rent his home out or sell it. He wouldn't even be allowed to pay a cleaner to come and clean it.
In addition to the asset freeze, Mr Abramovich has been issued with a UK travel ban, which means he will not be permitted to enter the UK. His current whereabouts are unknown.
Why has Abramovich been sanctioned?
The government says the sanctions have been imposed in "response to Putin’s illegal and unprovoked invasion". It said they are "designed to ensure he fails in Ukraine by crippling Russia’s economy supporting his war machine".
Mr Abramovich has had his assets frozen because of a close relationship with Putin that has lasted "for decades", according to the government.
“This association has included obtaining a financial benefit or other material benefit from Putin and the Government of Russia," the government said.
"This includes tax breaks received by companies linked to Abramovich, buying and selling shares from and to the state at favourable rates, and the contracts received in the run-up to the 2018 World Cup. Therefore, Abramovich has received preferential treatment and concessions from Putin and the government of Russia.”
Despite this claim, Abramavoch has repeatedly denied that he has any links to Putin or the Russian state. He has denied doing anything that merits a sanction or having his assets frozen.
What does this mean for the sale of Chelsea FC?
The planned sale of the Chelsea club could now be stalled. The only way it can still go through is if the government issues a licence, and Abramavoch would have to prove that he would not benefit from the sale to meet the conditions.
Abramovich has owned Chelsea since 2003 but put the club up for sale on March 2 in the wake of Russia’s continued invasion of Ukraine.
Downing Street is “open” to a sale of Chelsea, but confirmed that a separate licence would need to be approved by the Treasury and that “under no circumstances” could he profit from it.
The 55-year-old had previously pledged to donate all funds from a Chelsea sale into a new foundation set up to benefit victims of the war in Ukraine. A host of parties have signalled interest in buying the club.
The sanctions affect the whole club which means all Chelsea teams, including the highly-successful women’s team, are affected.
Ministers have issued a licence authorising Chelsea to continue playing matches, however, the club will be subject to a transfer ban and will be blocked from negotiating new contracts with current players.
Season ticket holders and those with games already booked can still attend matches, but no new tickets can be sold and the club’s merchandise shop will close.
Culture Secretary Nadine Dorries said on Twitter: “Our priority is to hold those who have enabled the Putin regime to account.
“Today’s sanctions obviously have a direct impact on Chelsea and its fans. We have been working hard to ensure the club & the national game are not unnecessarily harmed by these important sanctions.
“To ensure the club can continue to compete and operate we are issuing a special licence that will allow fixtures to be fulfilled, staff to be paid and existing ticket holders to attend matches while, crucially, depriving Abramovich of benefiting from his ownership of the club.
“I know this brings some uncertainty, but the Government will work with the league and clubs to keep football being played while ensuring sanctions hit those intended. Football clubs are cultural assets and the bedrock of our communities. We’re committed to protecting them.”
The Chelsea squad will continue to prepare for Thursday’s Premier League clash at Norwich as normal, but everyone at the club will now set about examining the details of the current situation.
Chelsea’s shirt sponsor, telecommunications company Three, has placed the deal under review.
A company spokesperson said: “We are in discussions with Chelsea and reviewing our position.”
The three-year deal was announced in January 2020, with the company logos appearing on shirts from the start of last season.
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