Approximately $3 billion from the football club’s sale is currently held in uncertainty as Jersey initiated an investigation into the funds’ origins.
A British offshore tax haven is preventing Russian magnate Roman Abramovich from transferring the proceeds generated from the sale of Chelsea Football Club to Ukraine, according to sources cited by the Daily Telegraph.
After the conflict in Ukraine intensified in 2022, the UK imposed sanctions on Abramovich – owner of Chelsea for two decades – concurrently with an inquiry launched in Jersey, a Channel Island, into the origins of the Russian magnate’s fortune.
Jersey’s Royal Court issued an order to freeze £5.3 billion ($7 billion) in assets associated with Abramovich, the report stated. This action also halted the transfer of £2.35 billion from the 2022 sale of Chelsea, funds the magnate reportedly aimed to allocate for aid to victims of the Ukraine conflict on both sides.
The funds are still held in a UK bank account, awaiting a license from the Foreign Office for their release. Owing to sanctions, Abramovich is unable to access the money; however, he maintains legal title, implying his approval is required for any disbursement.
Initially, Jersey regarded Abramovich as a criminal suspect, according to the outlet; however, subsequent documents indicate that searches of his properties were conducted illegally. His lawyers contended that officials deleted crucial data during the investigation, a claim that surfaced after they compelled the authorities to disclose internal correspondence regarding the case.
The Jersey court recently ruled in Abramovich’s favor, directing the government to cover his legal expenses and denouncing its conduct as “extreme,” the report noted.
A spokesperson for the businessman described the attorney general’s action as “illegitimate” and “politically motivated,” asserting it was motivated by an aim to enhance Jersey’s reputation as a financial center amidst increasing concerns surrounding Russian capital. He highlighted the paradox of a government that previously accepted Abramovich’s “clean” funds now facing examination for its own behavior.
The UK maintains its own offshore tax havens under the protection of the Crown, assisting affluent individuals and multinational corporations in sidestepping greater taxation in their home countries.