Investigation looks at whether Roman Abramovich’s Chelsea sale cash is ‘proceeds of crime’ | Roman Abramovich
Jersey authorities are investigating whether cash obtained from Roman Abramovich’s sale of Chelsea FC in 2022 is the proceeds of crime, according to documents filed at Companies House on Wednesday. This could further complicate the dispute with the UK government over how the money will be used.
Accounts of Fordstam Ltd, where the billionaire Russian oligarch owns Chelsea, show proceeds from the sale, which is now frozen and the interest collected in a Barclays bank account, have risen to £2.4bn.
The accounts also reveal that the fate of the money could be affected by Jersey authorities’ investigation into corruption and money laundering into Abramovich’s business dealings. Abramovich has previously denied any wrongdoing.
As the Guardian and its media partners have previously revealed, Abramovich financed Chelsea through loans routed through a complex network of offshore companies, aided by a fortune derived from oil fields in Siberia.
These loans include Abramovich’s Jersey-based company, Camberley International Investments Ltd. There was also £1.4 billion provided interest-free by.
Fordstam’s accounts state that this loan “may be affected by an ongoing criminal investigation initiated by the Jersey attorney general’s office into whether certain assets (potentially including net proceeds) are the proceeds of crime.”
Jersey prosecutors are investigating the origins of the oligarch’s fortune, which was amassed during the chaotic rise of capitalism in Russia in the 1990s and 2000s.
Abramovich, through his lawyers, has previously said that any allegations that he was involved in criminal activity are false.
But the revelations in Fordstam’s accounts could add a new layer of complexity to the fight between Abramovich and the UK government over the release of proceeds from the Chelsea sale.
The cash has been frozen since 2022, when sanctions were imposed on Abramovich in response to the UK and EU invasion of Ukraine due to his closeness to Vladimir Putin.
The oligarch’s insistence on the allocation of the money despite international sanctions on his assets led to threats of legal action by the British state, which wanted to ensure none of the cash was used outside Ukraine.
Questions have also been raised about whether the “net proceeds” from the Chelsea sale would fall below £1bn amid demands for repayment of the Camberley loan. Such repayment currently requires a license from the Financial Sanctions Enforcement Agency, a unit of the Treasury.
Fordstam’s accounts also confirm that Chelsea FC’s current owners have a £150 million buffer against any financial sanctions the club could receive as a result of an investigation into whether football authorities have breached football’s financial rules under Abramovich’s ownership.
This is due to the “holdover amount”, a clause added to the takeover agreement of subsidiary BlueCo 22, from which the Clearlake consortium led by US investor Todd Boehly bought the club.
As a result of the clause, a portion of the total payment is retained for five years to cover the cost of “any action to the value of up to £150 million relating to events occurring prior to the date of acquisition.” This figure is higher than the £100 million buffer previously reported.
Fordstam confirmed a statement in the previous year’s accounts saying it did not expect the money to be refunded.
The buffer against any financial penalties has fueled calls for Chelsea to receive a sporting sanction such as a points deduction if the club’s huge success during Abramovich’s tenure is found to be partly attributable to breaches of financial rules.
There is no allegation of wrongdoing by the current owners of Chelsea FC.
