Investigation into Roman Abramovich in Jersey Delays Ukraine Charity Donation from Chelsea Sale

Recent financial disclosures from Roman Abramovich's UK-based company, Fordstam Ltd, have shed light on complications surrounding the donation of proceeds from the sale of Chelsea Football Club. The Russian billionaire, sanctioned by the UK government following Russia's invasion of Ukraine in 2022, was forced to sell the Premier League club. He pledged that all net proceeds would benefit victims of the war in Ukraine, but accounts filed for the year ended June 2023 show only £987 million ($1.3 billion) allocated to a charitable foundation, far short of the total £2.35 billion ($3.1 billion) sale price.

The shortfall stems from £1.4 billion ($1.9 billion) owed to Camberley International Investments, a Jersey-based entity connected to Abramovich. This amount, originally a loan to Chelsea via Fordstam, is now entangled in a money laundering investigation by Jersey's Attorney General. The probe, initiated in March 2022 shortly after the Ukraine invasion, led to the seizure of assets valued over $7 billion linked to Abramovich. A saisie judiciaire—a court-ordered asset freeze—was imposed by the Jersey Royal Court in April 2022.

"The Royal Court also imposed a formal freezing order... over assets understood to be valued in excess of US$7bn which are suspected to be connected to Mr Abramovich," stated the Jersey Law Officers’ Department in April 2022.

Fordstam's accounts note that the funds tied to Camberley "may be affected by an ongoing criminal investigation... into whether certain assets—potentially including the net proceeds—amount to the proceeds of crime." Until resolved, these funds cannot be released to charity. At the time of the sale, Abramovich's statement on Chelsea’s website affirmed: “all net proceeds from the sale will be donated for the benefit of all victims of the war in Ukraine.” His spokesperson added that he “has not asked for any loan to be repaid to him,” dismissing contrary suggestions.

The Jersey investigation is central to the dispute. Authorities allege the frozen assets, including those held by Camberley, may be proceeds of crime. This has broader implications, as Abramovich's lawyers recently warned the UK Government in a letter that the sale funds are “wholly” his and he will resist any confiscation attempts. The letter further stated: “Mr Abramovich denies the allegations in the strongest possible terms and has challenged the investigation, which he contends has been launched for improper political motives, and is currently engaged in related litigation against the Jersey government for unlawful means conspiracy and misfeasance in public office.”

Abramovich has scored legal victories against Jersey authorities. Court documents reveal that raids by the States of Jersey Police were deemed unlawful, breaching his data protection rights. David Michael Cadin, master of the Royal Court, ruled the government's conduct “out of the ordinary... and unreasonable,” issuing a declaration of breach after Abramovich's team obtained private messages and emails from officials.

In response, a Jersey government spokesperson, as reported by the Independent, said they “categorically reject allegations of conspiracy, misfeasance in public office, or bad faith” and will “continue to defend our position vigorously.” Despite these challenges, Abramovich's appeals to dismiss the investigation or release assets have been rejected, and no charges have been filed four years after sanctions.

The Law Officers’ Department declined to comment on the live investigation when contacted. The outcome remains uncertain, leaving the full charitable donation in limbo and highlighting ongoing tensions between Abramovich, Western governments, and his frozen assets amid the Ukraine conflict.