Ministers must walk a careful tightrope in Abramovich case
Threats from British ministers to sue Roman Abramovich have brought the Russian billionaire back into the spotlight.
A fortnight after Russia invaded Ukraine, Liz Truss, then foreign secretary, announced sanctions against seven of the wealthiest Russian oligarchs. On her list was Abramovich, who at the time owned Chelsea FC. His assets were frozen, a prohibition was placed his on transactions with UK individuals and businesses, and he was subjected to a travel ban.
Having owned Chelsea since 2003, Abramovich was granted a special licence to sell the club, provided he could prove that he would not benefit from the deal. In May 2022, Todd Boehly led a consortium, later known as BlueCo, which bought Chelsea — and the sale proceeds remain frozen in a UK bank account linked to Abramovich. While he cannot gain access to the money, it legally belongs to him.
This month the government threatened legal action to ensure that the frozen £2.5 billion is ring-fenced to fund humanitarian causes only in Ukraine. Issuing a joint statement, Rachel Reeves, the chancellor, and David Lammy, the foreign secretary, said: 'While the door for negotiations will remain open, we are fully prepared to pursue this through the courts, if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.'
• Roman Abramovich: government threatens to sue former Chelsea owner over sale
The three-year delay in the funds being released centres on sustained disagreement between the UK government and Abramovich. Through his lawyers, the oligarch argues that a much wider set of beneficiaries should receive money, with proceeds being donated via a foundation 'for the benefit of all victims of the war in Ukraine'. That would include Russian soldiers and other charitable causes outside Ukraine.
After three years of fruitless discussion, the government is now seeking to break the impasse. But after the threat of legal action against Abramovich — intended to force his hand as Reeves and Lammy have outlined — the government must now walk a legal tightrope in proving its case. They must be careful not to set a precedent for asset-freezing cases that undermines the rule of law, or invites future legal challenges from other sanctioned parties.
An attempt by the government to force a release of the sale proceeds will risk a legal confrontation with the established sanctions framework.
Legally, they must be dealt with under the terms of the licence granted by the Office of Financial Sanctions Implementation. However, it is conceivable that if ministers proceed down this road, other legal avenues might be considered, such as those under international investment treaties, depending on the circumstances.
Manifestly, turning a high-profile Premier League transaction into a High Court test case for sanctions enforcement will not be straightforward — there are no easy games at this level.Mark Hastings is a partner at Quillon Law
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
39 minutes ago
- Sky News
Sir Keir Starmer tries to contain rebellion among Labour MPs over welfare reforms
Sir Keir Starmer had a series of one-on-one meetings with Labour MPs on Friday to try to contain a rebellion on the government's welfare reforms. Ahead of the assisted dying vote, the prime minister met privately with some of the dozens of MPs with concerns about the proposed cuts to sickness and disability benefits. The first vote on the legislation, which the chancellor says will save £5bn a year from the welfare bill, will be held in early July. The prime minister's involvement at this stage suggests a major effort is underway to quell a potential rebellion. Cabinet ministers say they do not expect mass resignations, but one junior minister told Sky News that opposition to the reforms was "pretty strong". One frontbencher, government whip Vicky Foxcroft, resigned her post yesterday, writing that she understood "the need to address the ever-increasing welfare bill" but did not believe the proposed cuts "should be part of the solution". Other junior ministers and whips have not, as yet, moved to follow her. But one government insider said: "It's difficult to tell if the mood will harden as we get closer. There's a lot of work going on." The package of reforms is aimed at encouraging more people off sickness benefits and into work, but dozens of Labour rebels said last month that the proposals were "impossible to support". 1:34 Welfare secretary Liz Kendall is also meeting individually with MPs. She said earlier this week that the welfare system is "at a crossroads" and the bill was about "compassion, opportunity and dignity". Ministers are trying to convince MPs that a £1bn fund to support disabled people into work, and the scrapping of the Work Capability Assessment, a key demand of disability groups, make the cuts package worth voting for. They insist that 90% of current claimants of personal independence payment (PIP) will not lose the benefit. But disability groups say the cuts will have a "disastrous" effect on vulnerable people.
Times
42 minutes ago
- Times
Florian Wirtz: Liverpool sign Bayer Leverkusen star on five-year deal
Florian Wirtz has revealed how Arne Slot's vision for Liverpool persuaded him to join the club for what could become a British-record transfer fee of £116million. The Germany playmaker admitted there was a time when he 'didn't expect Liverpool to be his next club', only for the power of the club's sales pitch to convince him to leave Bayer Leverkusen and reject interest from Manchester City and Bayern Munich. Wirtz also spoke of the profound effect that losing 4-0 at Anfield with Leverkusen in the Champions League last November had upon him as he described Liverpool as 'machines'. Liverpool have paid £100million for the attacking midfielder, with a further £16million dependent on bonuses, and their summer outlay will continue as they have agreed to sign the Bournemouth left back Milos Kerkez in a £40million deal. That will take the spending beyond £200million, of which Wirtz is the undoubted centrepiece, with the 22-year-old confident he will continue to develop under the tutelage of Slot. 'I just thought that it was the right point in my career to make the next step and, of course, I wanted to get to a club that is from the top three in the world, and Liverpool was one of them,' he said. 'The people say I'm a creative player and I hope I can bring this creativity to the team and also the joy on the pitch. I try to make assists, goals and run for the team and defend. I hope I can just make the team one step better. 'I just saw myself in the best hands in Liverpool. I was really convinced by the people here, by the idea, and everything the club offers me was really good. It was not that easy for me, for sure, because I am a German player. I play for the Germany national team. 'So it was not easy for me to decide, but the talks with the coach [Arne Slot] and Richard [Hughes, sporting director] and everybody were, from the very first time, so good and it just kept going like this. 'Every time I spoke to one of the [people from] the club I felt like, 'This is the place I want to be,' and so in the end I was really 100 per cent convinced I want to join Liverpool and it was the best choice. 'I can remember the first time, he [Slot] already showed me some scenes of how we want to play and how I could fit in the team. He was just telling me that I'm a player he really wants to have in his team and can bring the team a step forward. I just could imagine it [being] good to be in the team and to make it better because I have to make my performances every week — but I'm here for this. 'I was the first one in my family who was really into this club when they spoke to us or told us that they are interested in signing me. For sure, I didn't expect that Liverpool will be my next club but my family was supporting me and I didn't have to convince them about the club or something. 'I'm not coming [to] have fun here. I want to achieve something and give the fans what they deserve. Last season they won the Premier League so my goal is, for sure, to win it again and also to go further in the Champions League. I'm really ambitious.' Wirtz referenced the defeat Leverkusen endured last season and said he had watched both the title celebrations against Crystal Palace and the end-of-season parade and had been wowed by the joyous scenes. He had flown into Manchester airport on Thursday before beginning a medical that he completed on Friday. Wirtz will return for pre-season training on July 8. 'It was really tough to play here,' Wirtz continued, during an interview with Liverpool's website. 'I was still thinking about the game when I spoke to the coach or the other guys. It was an example [of] how it can be here. We lost 4-0 and we had to run so much and lost almost every duel. I just wanted to be part of this team. 'Inside me, I was feeling this quality of the team and also the size of the club. Inside me, I was always thinking about this game. I could remember how it was playing here.' Should the bonuses be triggered, the Wirtz transfer would outstrip the present British record of £115million, paid by Chelsea to Brighton & Hove Albion for Moisés Caicedo in 2023. Liverpool will look to finalise Kerkez's transfer next week and have already spent £29.5million on signing Jeremie Frimpong, who was Wirtz's team-mate at Leverkusen and taught him to speak English. A similar fee has been paid for the Valencia goalkeeper Giorgi Mamardashvili and £1.5million has been spent on another goalkeeper, Armin Pecsi of Puskas Akademia. With Jarell Quansah set to join Leverkusen in a deal worth about £35million when his participation with England in the European Under-21 Championship is over, there is also interest in Palace's Marc Guéhi. Bournemouth want at least £65m for PSG target Zabarnyi Bournemouth have valued Illia Zabarnyi at more than £65million in talks to sell the centre back to Paris Saint-Germain (Gary Jacob writes). The French club made an increased offer worth up to £55million for Zabarnyi, who signed a five-year contract last summer that does not have the type of release clause that allowed his defensive partner Dean Huijsen to join Real Madrid for £50million last month. PSG made a first offer of £40million plus £5million in add-ons for the 22-year-old. Zabarnyi cost £24million from Dynamo Kyiv in January 2023. West Ham United want about £25million for Nayef Aguerd after interest in the centre back from Juventus. Aguerd, 29, has two years left on his contract and was on loan at Real Sociedad last season. He joined from the French club Rennes for about £30million, including add-ons, in 2022. Southampton have rejected Atalanta's increased £12million offer for Kamaldeen Sulemana, the winger. The Atalanta head coach, Ivan Juric, stood down as Southampton manager in April after the club were relegated from the Premier League.
The Sun
an hour ago
- The Sun
Heads must roll over pro-Palestinian thugs break-in at RAF Brize Norton
Brize idiots HOW on earth did pro-Palestinian thugs manage to break into RAF Brize Norton to damage two military planes? Breaking through the perimeter fencing is one thing. 1 But why weren't they stopped in their tracks by armed guards before they got anywhere near military assets? Instead, the first hapless commanders heard of it was when Palestine Action gleefully posted their footage online. It's beyond belief that security could be so lax at a time when the base is on high alert over Iran and Russia. Results of a full investigation must be made public and, if necessary, heads should roll. Meanwhile, this wasn't a harmless stunt by a cosy protest group. Palestine Action is made up of dangerous fanatics bent on attacking our country from within on behalf of a foreign cause. Lord Walney, the Government's ex-adviser on political violence, recommended it be outlawed as an extremist political group more than a year ago. The militants have since gone on to terrorise workers at weapons factories and people outside Crown courts. We welcome Home Secretary Yvette Cooper's decision to now proscribe the hate-filled group. The question is: Why did it take so long? Shock moment pro-Palestine protesters break into RAF Brize Norton & spray 2 military planes with paint before escaping Dead loss ASSISTED dying is a deeply emotive and complex issue. In brutal terms, it amounts to state-sanctioned killing. On that basis, it's deeply worrying that Kim Leadbeater's ill-considered private members' bill is now set to become law. It simply does not have enough safeguards, particularly for the vulnerable, poor and disabled. During yesterday's debate, the idea it might allow families to coerce elderly relatives into early deaths was brushed aside as though such a thing could never happen. Fears from hospice carers were also dismissed. The Government has been absent throughout the legislative process and nearly 150 MPs ducked the decision and abstained. Crime associated with illegal migration is of significant public interest and concern in the wake of the Casey report into grooming gangs.
