European Court to Decide on Roman Abramovich's EU Sanctions Status

The European Court of Justice (ECJ) is set to make a decision on Wednesday regarding the potential removal of former Chelsea owner Roman Abramovich from the European Union's sanction list. This comes after Russia's invasion of Ukraine in 2022 led to Abramovich, as well as Russian officials and business leaders, being placed on the EU's sanction list.

The European Union stated that Abramovich has extensive and intimate connections with Vladimir Putin, with privileged access to the president and a strong rapport with him. These ties have enabled the tycoon to sustain his significant wealth. The EU further alleged that he has been profiting from Russian decision-makers involved in the annexation of Crimea and the destabilization of Ukraine.

The EU claimed that Abramovich, as a prominent Russian businessperson, was a significant source of revenue for the Russian government. To this date, nearly 1,800 individuals and entities are under EU sanctions, facing travel restrictions and asset freezes.

In May 2022, Abramovich filed a lawsuit against the EU in an effort to overturn his placement on the sanctions list, according to documents from the ECJ.

Abramovich argues that the European Union made a "clear error" in its assessment and that the decision to list him is a violation of his "fundamental rights" and an "unwarranted infringement" of his rights protected by EU law.

Documents from the court in Luxembourg also stated that Abramovich is seeking €1 million (£1.1 million) from the EU for reputation damage, which will be donated to a charitable foundation for conflict victims connected to the sale of Chelsea FC.

Abramovich (front center), pictured here in 2005, enjoyed a lot of success at Chelsea.

Odd Andersen/AFP/Getty Images

In March 2022, Abramovich revealed his plans to sell Chelsea Football Club and establish a charitable foundation with the net proceeds of the sale to be donated to benefit all victims of the war in Ukraine. The following May, a deal worth $5 billion resulted in Chelsea being sold to an ownership group led by Todd Boehly, with $3.08 billion earmarked for Abramovich's charitable cause.

During a parliamentary committee hearing last week, UK's Europe Minister Leo Docherty stated that the proceeds from the sale are currently frozen in a UK bank account. He also mentioned that the government is in the process of having independent experts establish a foundation to manage the money. Docherty also highlighted a key difference between the government and others involved in setting up the foundation, which is the use of the funds inside Ukraine or for Ukrainians outside of Ukraine.

Abramovich also appears on the UKs sanctions list.