Chelsea owner Roman Abramovich sanctioned by UK - and now Three suspends sponsorship of the club
Roman Abramovich has been sanctioned by the UK government as part of attempts to crackdown on wealthy Russians with assets in the country.
Associated Press Abramovich is pictured in his box at Chelsea. Pic: AP
The Chelsea Football Club owner is one of seven more Russian oligarchs who have had sanctions placed on them by ministers in response to Russia's invasion of Ukraine.
A government document announcing the move said Mr Abramovich has had a "close relationship for decades" with Russian President Vladimir Putin.
Reuters Roman Abramovich is in the process of selling Chelsea Football Club which he has owned since 2003
"This association has included obtaining a financial benefit or other material benefit from Putin and the government of Russia," it said.
And following the decision, a Three spokesperson now said it has "requested Chelsea Football Club temporarily suspend our sponsorship of the club, including the removal of our brand from shirts and around the stadium until further notice".
Reuters Foreign Secretary Liz Truss said Roman Abramovich and the other six oligarchs have 'close links to Putin' and are 'complicit in his aggression'
"We recognise that this decision will impact the many Chelsea fans who follow their team passionately.
"However, we feel that given the circumstances, and the Government sanction that is in place, it is the right thing to do."
Abramovich in process of selling Chelsea
Last week, Mr Abramovich announced that he intends to sell Chelsea after almost 20 years of ownership, and pledged that net proceeds from the sale would be donated to "all victims of the war in Ukraine".
The sanctions will come into force before the sale of the football club, which was previously estimated to be worth around £3bn, is able to take place.
Chelsea's shirt sponsor Three, the mobile phone and telecommunications company, said they are reviewing their relationship with the club after the British government announced sanctions on the club's owner.
"We are in discussions with Chelsea and we are reviewing our position," a Three spokesperson said.
Another club sponsor, delivery service Zapp, said its partnership with the club is also now "under review".
Mr Abramovich will have his assets frozen under the move, will also face a prohibition on transactions with UK individuals and businesses and will have a travel ban forbidding him to enter the UK.
The announcement, which comes 117 years to the day since Chelsea was founded, also states that jets and yachts owned or chartered by Mr Abramovich can been seized.
The outgoing premiership side owner's net worth is an estimated £9.4bn and he is one of the few oligarchs from the 1990s to maintain prominence under Mr Putin.
Portugal has announced it could strip Mr Abramovich of the citizenship granted to him in April last year depending on the outcome of an ongoing inquiry.
Seven more Russian oligarchs sanctioned
The other six Russian oligarchs who have been sanctioned by the UK government on Thursday are:
• Oleg Deripaska, who has stakes in En+ Group - a major extractives and energy company
• Igor Sechin, chief executive of Rosneft - a Russian state oil company
• Andrey Kostin, chairman of VTB bank - the second largest bank in Russia
• Alexei Miller, chief executive of energy company Gazprom
• Nikolai Tokarev, president of the Russia state-owned pipeline company Transneft
• Dmitri Lebedev, chairman of the board of directors of Bank Rossiya - widely considered to be the Kremlin's private bank
The seven latest individuals to be sanctioned have a collective net worth of around £15bn.
The government has now sanctioned more than 200 individuals and entities.
'Blood of the Ukraine people is on their hands'
Foreign Secretary Liz Truss said Mr Abramovich and the other Russian oligarchs sanctioned are "complicit" in Mr Putin's aggression and that there should be "nowhere to hide" for individuals close to his regime.
"The blood of the Ukrainian people is on their hands. They should hang their heads in shame," she said.
"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."
Prime Minister Boris Johnson said there was "enough of a link" between the Putin regime and the fresh round of oligarchs to be sanctioned.
The PM added that he will continue to "tighten the economic vice around the Putin regime" with further sanctions in the future.
Chelsea issued special licence to continue operating
Meanwhile, Culture Secretary Nadine Dorries acknowledged the decision would have an impact on Chelsea Football Club, but said a special licence which runs until 31 May would enable it to continue operating.
However, Sky News understands the licence for continued operation is very narrow:
• Chelsea fixtures will be fulfilled and can be televised
• Only people who already have tickets to upcoming matches at Stamford Bridge can attend
• Contracted staff and players will continue to be paid
• Tickets and merchandise cannot be sold.
• Mr Abramovich cannot profit from the sale of his club
• No new players can be signed
• Spend on travel for away games capped at £20,000
• Spend on security, stewarding and catering for home games capped at £500,000
Chelsea could be sold, but Mr Abramovich must not profit
Downing Street confirmed the government is "open" to a sale of Chelsea Football Club if a licence is approved by the Treasury, but said Mr Abramovich must not be allowed to profit.
"The important thing is under no circumstances would any sale allow Roman Abramovich to profit from that or take any money from that sale," a spokesperson for the PM said.
They added: "It's fair to say the government is open to the sale of the club but currently it would require another licence, and that would require further conversation with the Treasury and other departments."
Licence to be kept 'under constant review'
"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," Ms Dorries said.
Bill to bolster UK's ability to target Russian oligarchs sails through Commons
A statement issued by the government confirming the latest sanctions said the licence published will allow Chelsea to "continue playing matches and other football related activity which will in turn protect the Premier League, the wider pyramid, loyal fans and other clubs".
It adds that the licence will be kept "under constant review".
In a statement released later on Thursday, Chelsea Football Club said: "We will fulfil our men's and women's team fixtures today against Norwich and West Ham, respectively, and intend to engage in discussions with the UK government regarding the scope of the licence.
"This will include seeking permission for the licence to be amended in order to allow the club to operate as normal as possible. We will also be seeking guidance from the UK government on the impact of these measures on the Chelsea Foundation and its important work in our communities."
Chelsea Supporters' Trust express 'concern' at announcement
A Chelsea Supporters' Trust (CST) spokesperson said: "The CST notes with concern the government's statement regarding the owner. Supporters must be involved in any conversation regarding ongoing impacts on the club and its global fan base.
"The CST implores the government to conduct a swift process to minimise the uncertainty over Chelsea's future, for supporters - and for supporters to be given a golden share as part of a sale of the club."
Earlier this week, MPs worked fast-pace to pass the Economic Crime Bill which will come into force next week.
The Bill will significantly simplify the process of imposing sanctions and allow the UK to more easily sanction individuals and "stop oligarchs threatening the UK with multi-million pound lawsuits for damages at the taxpayers' expense and allow the UK to mirror allies designations".
Reference: Sky News: Sophie Morris, political reporter