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Russia sanctions spark fire sale, asset freezes for UK-based oligarch


Roman Abramovichich, the owner of Chelsea waves at his fans after the UEFA Champions League final between Manchester City FC & Chelsea FC at Estadio do Dragao in Porto, Portugal on May 29, 2021.

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Roman Abramovich, a billionaire Russian oligarch has begun a fire sale his most valuable U.K assets as part of Vladimir Putin’s latest attempt to disengage from their wealth and Western sanctions.

This Wednesday’s announcement was made by the mogul, 55 years old. sale of his prized Chelsea soccer clubThe crown jewel of a series of listings in England worth billions is located in England. This listing was not subject to the sanctions imposed by Western countries in an attempt to stop Putin’s war.

The club, which Abramovich bought for £140 million in 2003, is expected to sell for around £3 billion ($4 billion). The billionaire is said to be writing off £1.5 billion in debt owed to him by the club.

Meanwhile, a portfolio of London properties, including a Kensington mansion valued at £150 million and Chelsea Waterfront penthouse bought for £22 million in 2018, could reportedly fetch a combined £200 million.

It was completed just one day after Western allies had added two new names to their sanctioned oligarch list. the U.S.And the U.K.Alisher Usmanov is being targeted, along with others who have close ties to Russia. Their assets will be frozen, and their travel restrictions.

In a statement released Wednesday, Abramovich — who has thus far avoided taking a political stance on Russia’s invasion of Ukraine — said the move was in the “best interest of the club,” and added that all net proceeds from the sale would be donated to victims of the war. Following his decision to donate the Chelsea stewardship to charity last week, this statement was made by Abramovich.

However, the timing is remarkable. Chris Bryant (British opposition Labour party) stated that Abramovich was “terrified” of being sanctioned, and is now liquidating his assets.

Go after the assets of oligarchs

Abramovich (whose $12.5 billion fortuneOriginal source is the sale of Russian assets by the Russian government following the fall. He has thus far avoided some of the sanctions that would have been imposed on his peers.

As the second week of the war begins, there are indications that things may be changing. The West is stepping up its efforts to take out Russia’s rich elite.

Roman Abramovich, a Russian billionaire selling a property in London’s Kensington District on March 2, 2022

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French officials will be present on Thursday seized a yachtAccording to them, the Russian Rosneft boss Igor Sechin is being linked as part of Europe’s ongoing efforts in capturing luxury assets. A task force has been established by the U.S. to seize yachts, private jets, and luxury apartments of Russians connected to Putin.

The clock continues to tick for targeted oligarchs shift their assets to overseas territoriesThey will also be able to increase their wealth with cryptocurrencies.

CNBC Analysis shows that Vagit Alekperov (president of Russia-based Lukoil) is sailing his yacht towards Montenegro while three yachts belonging to other Russian billionaires approach the Maldives.

Moving too slowly