Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Roman’s empire: the rise and fall of Abramovich’s reign at Chelsea

Roman’s empire: the rise and fall of Abramovich’s reign at Chelsea

Almost 20 years after his high profile purchase, the oligarch is looking to sell the west London club. Here’s the story of how it unravelled

So, for Roman Abramovich, after 19 years of being garlanded in Britain for the glittering success his money bought for Chelsea football club, the game is finally up.

A whole era in which the government, Premier League and crowds of London professionals were untroubled by the well-documented way the Russian oligarch had amassed his fortunes crashed when Vladimir Putin invaded Ukraine.

Now, with the immediate threat of sanctions, and speeches made in parliament linking him to corruption and Putin, he has put Chelsea up for sale. Just three weeks ago Chelsea won the Club World Cup in Abu Dhabi, and Abramovich went on to the pitch to lay hands on the trophy.

The universally familiar sight of his winning smile being broadcast around the world was abruptly switched for a different image when the Labour MP Chris Bryant got up in the Commons last Thursday.

Bryant called for sanctions on Abramovich and quoted a Home Office document written in 2019, after the novichok poisoning in Salisbury of the former Russian spy Sergei Skripal.

“As part of HMG’s [Her Majesty’s government’s] Russia strategy aimed at targeting illicit finance and malign activity, Abramovich remains of interest to HMG due to his links to the Russian state and his public association with corrupt activity and practices,” the document read. “An example of this is Abramovich admitting in court proceedings that he paid for political influence.”

Chelsea sources maintained the position that Abramovich was not involved in politics and had done nothing to merit being sanctioned, but within a week he was looking for an exit and selling the club.

Abramovich admitted this week he was selling Chelsea FC, 19 years after the high-profile purchase.


Bryant’s statement in parliament should not have come as any kind of revelation. The challenge to the British establishment posed by the upending of Abramovich’s reputation is not why it took so long for these issues to be known, because they have been known for years.

Bryant confirmed to the Guardian that the case referred to in that Home Office document was the landmark high court claim Abramovich successfully defended in 2012, brought by his erstwhile oligarch mentor Boris Berezovsky.

The trial took place in public in the heart of London, with some of the English legal system’s most prestigious people involved. Abramovich was represented by Jonathan Sumption QC, who was afterwards appointed a supreme court judge.

The judgment in the case, delivered by Mrs Justice Gloster, setout in detail how Abramovich’s fortune had been forged in the “wild east” of post-communist Russia.

The document Bryant read out in parliament did not expose unknown facts; it only revealed that somebody in the Home Office had actually read the judgment and, seven years later in 2019, had given the case some attention.

Berezovsky’s claim was that he and Abramovich had a partnership agreement to share the enormous fortunes generated by the formation of the Russian oil company Sibneft, and the cut-price, mostly rigged auctions that delivered it to Abramovich’s ownership.

Abramovich’s defence, led by Sumption, was that there was no formal agreement and that Abramovich had paid Berezovsky approximately $2bn (£1.49bn) for political protection and influence, principally with Russia’s then president Boris Yeltsin.

The Labour MP Chris Bryant, who called for sanctions against Abramovich in the House of Commons.


The details that emerged in the hearings were a shocking reminder of how Russia’s industries, all state-owned under communism, appear to have been transferred to a handful of individuals, who became oligarchs while most of the population was impoverished.

The judgment, and both Abramovich and Berezovsky in their own evidence, were clear that Yeltsin created Sibneft by decree after Berezovsky promised he would use income from the resulting oil giant to fund a TV company that would give Yeltsin favourable coverage.

Gloster, ultimately finding in favour of Abramovich on the basis that there was no formal agreement with Berezovksy and he had been paying for political influence, noted that Russia in the 1990s was “not governed by the rule of law”. Ambitious people needed “krysha,” a Russian word that originally meant paying violent criminals for physical protection, and was extended to protection provided by politicians and bureaucrats.

“It was Mr Abramovich’s case that the relationship between Mr Berezovsky and himself was founded principally on political krysha, or protection,” the judgment stated. “He claimed that the relationship with Mr Berezovsky included … an element of physical, as well as political, protection.”

The physical protection was provided by Berezovsky’s associate, a “hard man” from Georgia, Badri Patarkatsishvili. In a crucial passage, Gloster then noted:

It was also Mr Abramovich’s case that the lobbying activities of Mr Berezovsky, as a protector providing political krysha for Mr Abramovich, were inherently corrupt; and that, likewise, the deal between the two men, whereby Mr Abramovich agreed to pay Mr Berezovsky for his krysha services, was also corrupt. Mr Sumption accepted that Mr Abramovich was privy to that corruption but submitted that the reality was that that was how business was done in Russia in those times.

The narrative runs into the arrival of Putin, who is famously reported to have warned the oligarchs against encroaching on his power. Berezovsky misjudged the seriousness of this shift, his TV station did criticise Putin, and, in fear of his life, he fled Russia for Britain.

Abramovich made no such missteps. “Mr Abramovich enjoyed very good relations with President Putin and others in power at the Kremlin,” the judgment recorded. “It was also clear that Mr Abramovich had privileged access to President Putin, in the sense that he could arrange meetings and discuss matters with him.”

This ruling in his favour saved Abramovich approximately $5bn claimed by Berezovsky, but in the decade since his representatives have sought to play down the elements cited by Bryant’s Home Office document. They have said Gloster’s note about Abramovich’s case was due to Sumption’s opening speech having perhaps been mistakenly recorded, and that Abramovich did not in fact acknowledge that the means by which he acquired Sibneft were corrupt.

Vladimir Putin and Roman Abramovich during a meeting in the Kremlin in May 2005.


On Putin, they downplay the extent of the relationship, pointing to observations such as this in the judgment: “Mr Abramovich himself accepted that he was regarded by Mr Berezovsky and Mr Patarkatsishvili as ‘close to people in power in Moscow’. But, as [the senior Kremlin administrator Aleksandr] Voloshin explained, at the time, he was not a member of President Putin’s ‘inner circle’.”

Thomas Tuchel, Chelsea’s manager, lost patience with the persistent questions this week and said he did not know enough about the club’s owner to answer them. Nor, clearly, did many people who have played and worked for Chelsea, and supported Abramovich, through nearly 20 years of celebrated ownership.

But all of them could and arguably should have known, because the information is public and has been there throughout. Before the court case, even in 2003 when Abramovich bought Chelsea, there were already books on Russia’s post-communist tragedy. The Sibneft auction was covered in Sale of the Century, by the then FT journalist, now Canada’s finance minister, Chrystia Freeland. Yet as the money rolled in and football’s allure cast its magical spell, too few people seemed to care.

Until Putin attacked Ukraine, that is, and reality finally bit.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
×