London Daily

Focus on the big picture.

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.

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
You Are So Beautiful
Rob Schneider explains California reparations legislation.
Postmodern Jukebox European Tour Version
Who knew badminton could get so intense?
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Farmers break through police barriers in Brussels.
Sattahip Motor Show 20
London's Iconic British Telecom Tower Sold To Become Hotel
SONATE AU CLAIR DE LUNE - Moonlight sonata
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
A kiss to build a dream on
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Russia Claims UK Cultural Agency Spied for Ukraine
Mean Blues
Apple warns against drying iPhones with rice
La Chansonnette
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
Pattaya Addicts
German economy is in 'troubled waters' - ministry
Franz Liszt - Liebestraum - Love Dream
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Dream a little dream of me
New video
Unchained Melody sung like you've NEVER heard!
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Dave Brubeck - Take Five
Russia is rebuilding capacity to destabilize European countries, new UK report warns
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
EU Commission wants anti-drone defenses at Brussels HQ
Rondo Alla Turca
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
Kiss of fire
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Prince William Urges End to Gaza Conflict
Israel Cachao López - Guajira Clásica
UK court to hear Assange's final appeal against extradition to the US, where he faces charges related to his journalistic work—the publication of a classified video in 2010 that exposed US war crimes against humanity.
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
About 50-60% kids either chose to be YouTuber or influencer
Strauss - Radetzky March - Karajan
A viral video of Nationals MP Barnaby Joyce lying on a Canberra footpath is celebrated by his media mates.
La vie en rose
European Countries React to Navalny's Death by Summoning Russian Diplomats
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
Orlando Cachaito Lopez Redencion
English farmers to be offered ‘largest ever’ grant scheme amid food security concerns
Edith Piaf - NON, JE NE REGRETTE RIEN
Cameron government knew Post Office ditched Horizon IT investigation
RADETZKY MARCH-2008-Wien, New Year Concert
EU Calls for Immediate Ceasefire in Gaza Conflict
Only you (And you alone)
EU Vows To Hold Putin "Accountable" After Meeting Alexei Navalny's Wife
Strangers In The Night
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
Charles Aznavour - La Boheme
The EU Initiates Naval Mission to Defend Red Sea Trade Routes
Summer time
EU and UK Announce Joint Effort on Migration
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Brazil's Lula Likens Gaza Operation to Holocaust, Israel Says "Red Line" Crossed
Aux Champs Elysees
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Microsoft-backed OpenAI valued at $80bn after company completes deal
La Mer (Beyond the Sea) – Avalon Jazz Band
‘Alexei would want to tell Russia not to give up fighting’
She
Rwandan Footballer's Dismissal Sparks Concerns Over UK Asylum Plan
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Whisky Challenges China's Baijiu Market During New Year Celebrations
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
Radiohead - Creep
Putin Critic Alexei Navalny's "Killers" Refusing To Hand Over Body, Say Allies
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
"Historic Step": Zelensky Signs Security Pact With Germany
Perhaps, Perhaps, Perhaps - Multi-Couples
"Historic Step": Zelensky Signs Security Pact With Germany
Pentatonix Havana
20 Tech Giants Sign Effort To Fight AI Election Interference Across Globe
Paula Cole - Autumn Leaves
Joe Biden Accuses Putin of Causing Navalny's Death
Oscar Benton Bensonhurst Blues
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
OH NANANA vs ABUSADAMENTE
Tucker Carlson grocery shopping in Russia. This is so interesting.
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Julian Assange's Wife Warns of His Death if Extradited to US
NIGHTWISH - The Phantom Of The Opera
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Motorshow 2016 Tanjay Negros Oriental
Greece Legalizes Same-Sex Marriage and Adoption Rights
Monica Bellucci - Ti Amo
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Michael Jackson - Billie Jean Milena The Voice France 2018
In Britain Homeowners are receiving CPO’s (Compulsory Purchase Orders) so their homes can be redistributed to migrants
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×