Background and Context
The United Kingdom has taken a significant step in its efforts to target Russian oligarchs with ties to the Kremlin, freezing an estimated £10 billion in assets held by two longstanding business associates of Roman Abramovich. This move brings the total number of oligarchs, family members, and associates with ties to Russia on the U.K. list to 106.
Key Players
The sanctions are directed towards Eugene Tenenbaum and David Davidovich, both of whom have been associated with Abramovich for several years. Tenenbaum has been a director at Chelsea Football Club since 2003, when Abramovich purchased the Premier League club. A biography on Chelsea’s website describes Tenenbaum as one of Abramovich’s "closest associates."
Asset Freeze and Sanctions
The £10 billion asset freeze is higher than several leading estimates of Abramovich’s total net worth, with Forbes putting it at US$8.2 billion. This significant action indicates the extent to which Abramovich has invested in the U.K., earning the city its nickname "Londongrad" for its welcoming stance towards Russian oligarchs in the early 2000s.
Response and Impact
The sanctions come on the same day that bidders vying to buy Chelsea are due to submit their revised offers, with a series of North American billionaires competing for a club Abramovich bankrolled for the last two decades. London stock exchange filings revealed that Abramovich had transferred entities holding investments in U.K.-listed companies to both Davidovich and Tenenbaum following the invasion of Ukraine.
Quotes from Officials
"We are tightening the ratchet on Putin’s war machine and targeting the circle of people closest to the Kremlin," said Liz Truss, the U.K. Foreign Secretary. "We will keep going with sanctions until Putin fails in Ukraine. Nothing and no one is off the table."
Background on Abramovich and Sibneft
Abramovich sold Sibneft, the oil company he founded, to the Russian state in 2005 for a staggering US$13 billion. This deal cemented his fortune and solidified his position as a key player in Russia’s energy sector.
Additional Context and Connections
Davidovich now controls Norma Investments in the British Virgin Islands, one of Abramovich’s main investment vehicles. The name is an anagram of Roman, reflecting the close ties between the two individuals.
The sanctions on Tenenbaum and Davidovich mark a significant escalation in the U.K.’s efforts to target Russian oligarchs with ties to the Kremlin. This move sends a clear message that no one will be spared from accountability for their role in supporting Putin’s actions in Ukraine.
Timeline of Events
- 2003: Abramovich purchases Chelsea Football Club, and Tenenbaum becomes a director.
- 2005: Abramovich sells Sibneft to the Russian state for US$13 billion.
- Invasion of Ukraine: Abramovich transfers entities holding investments in U.K.-listed companies to both Davidovich and Tenenbaum.
Conclusion
The £10 billion asset freeze is a significant step in the U.K.’s efforts to target Russian oligarchs with ties to the Kremlin. This move reflects the growing international pressure on Russia to cease its actions in Ukraine and sends a clear message that accountability will be pursued for those supporting Putin’s regime.
