Russia-Ukraine War: Chelsea sale on hold after UK slaps sanctions on owner Roman Abramovic

The UK government on Thursday imposed fresh sanctions on Chelsea owner Roman Abramovic, freezing his assets and barring him travelling to the country, plunging the club into further crisis.

The Boris Johnson-led Conservative Party government has imposed similar sanctions on Rosneft CEO Igor Sechin and five other Russian oligarchs following the country’s invasion of Ukraine. The UK said the seven figures were added to the sanctions list due to their connections to Russia President Vladimir Putin, Reuters reported. The seven oligarchs have a combined net worth of $19.74 billion.

However, Chelsea’s status as a “significant cultural asset” led to the government granting it a special licence to keep playing. Abramovich, however, will not be able to make any profits from the club.

The step means only existing ticket holders, including season ticket holders, will be allowed to attend matches. Chelsea will also not be able to sign any new contracts, thus preventing it from transfers during the summer market. Existing members of staff and players will continue to be paid and catering services will also be allowed at matches. 

The latest sanctions put Chelsea’s long-term future into doubt. Ministers, however, tried to assuage any concerns. Minister for Sports Nadine Dorries tweeted: “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.”

She added: “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.”

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“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.”

Abramovic last week put Chelsea up for sale following Russia’s invasion of Ukraine amid talk of harsh sanctions being imposed on people believed to be close to Putin. The Russian oligarch will not ask for any loans to Chelsea to be repaid and said the sale proceeds would be donated to war victims. However, the asset freeze and sanctions could bar or delay that process.

He had earlier said that he would give the club’s “stewardship and care” to Chelsea’s foundation trustees.

British billionaire Nick Candy is the latest business magnate to throw elicit an interest in buying Chelsea. Hansjorg Wyss, a Swiss tycoon, and American investor Todd Boehly are also in the running. Reports suggest over 10 credible parties are compiling bids to acquire Chelsea.

The Chelsea squad is currently preparing for Thursday’s Premier League match at Norwich City.