Legal Battle Over Abramovich’s Assets Intensifies Amid Calls for Humanitarian Aid

Among the prominent figures now representing Roman Abramovich are Eric Herschmann, a former White House advisor to Donald Trump, and Lord Wolfson KC, the shadow attorney general in the House of Lords. They are supported by a former solicitor general of Jersey and a UK-based human rights expert, as preparations are underway for imminent legal claims amounting to £2.5 million in costs.

Tensions escalated last week when UK Prime Minister Keir Starmer publicly urged Abramovich to “pay up now,” asserting that the proceeds from Chelsea’s sale should be directed towards humanitarian relief in Ukraine. However, this demand has not shifted Abramovich’s position. His legal advisors maintain that discussions regarding the release of funds are not possible while the Jersey litigation is active. Consequently, the £2.35 billion allocated for Ukraine remains in a state of uncertainty, more than three years after the sanctions were imposed following the invasion.

The legal conflict centers around Abramovich’s claim that Jersey authorities mishandled data related to investigations against him. He initiated court proceedings after discovering that government records, including emails and messages associated with him, were missing or deleted. This led to a significant ruling in his favor, where Advocate David Michael Cadin, master of the Royal Court, determined that the Government of Jersey had breached its obligations and violated Abramovich’s data protection rights. Despite this, the broader asset freeze continues, and the standoff over the Chelsea funds prevails.

Advocate Cadin stated, “I have issued a declaration that the GOJ [Government of Jersey] defendants are in breach of their obligations.”

The UK Government asserts that the Jersey proceedings should not hinder the release of funds intended for Ukraine. A license has already been issued allowing for the allocation of these funds to humanitarian efforts, and ministers emphasize that Abramovich lacks a legal basis to delay this process.

Further complicating matters, financial records from Fordstam, Abramovich’s UK-registered entity that received the Chelsea sale proceeds, reveal an outstanding debt of £1.5 billion to Camberley International Investments, the Jersey-based parent company whose assets were frozen. Abramovich’s representatives argue that until the Jersey freeze is resolved, the distribution of the funds cannot be addressed. While sources connected to the discussions assure that this debt will not ultimately diminish the amount designated for Ukraine, Abramovich’s legal team has repeatedly declined to engage with the mechanics of the fund’s release while their challenge in Jersey remains unresolved.

Recent correspondence has highlighted a notable shift in Jersey’s treatment of Abramovich. In September 2017, he received a warm welcome from the island’s authorities when applying for residency, with a letter from Jersey’s director of high-value residency even suggesting a meeting to discuss a “soft landing”. However, this tone changed drastically after Russia’s invasion of Ukraine in 2022. In April of that year, shortly after Abramovich committed that Chelsea sale proceeds would assist “all” victims of the Ukraine conflict, the Royal Court of Jersey imposed a freezing order on $7 billion (£5.3 billion) worth of assets linked to him. The island’s attorney general labeled Abramovich as a suspect in a criminal investigation, although officials later acknowledged that searches of his properties had been unlawful. The breakdown in communication between Abramovich and UK authorities has left the Ukraine fund in a frozen state for three and a half years. Sources within the UK Government have recognized that the Jersey litigation has frequently been referenced by Abramovich’s side to justify stalling negotiations.

An Abramovich spokesperson previously commented: “The attorney general’s decision to investigate Mr. Abramovich was illegitimate and politically motivated, linked to enhancing Jersey’s reputation as a financial center following the Russia-Ukraine conflict, especially since the previous policy of inviting Russian wealth to the island had become politically problematic.”

The Government of Jersey has firmly rejected any allegations of misconduct. In a statement, it said: “The Government of Jersey is aware of recent media reports regarding ongoing legal proceedings involving Mr. Roman Abramovich. We respect the independence of the courts and the integrity of the legal process, and we will continue to defend our position vigorously. We categorically reject allegations of conspiracy or misconduct; these claims are entirely unfounded and will be addressed through appropriate legal channels.”

Abramovich’s legal team is substantial, including Herschmann and Lord Wolfson, alongside Howard Sharp, a former Jersey solicitor general, Maya Lester, a senior barrister specializing in sanctions and human rights law, Richard Lissack, a specialist in complex financial litigation, and Andrew Stafford, an expert in international finance cases. Foreign Office minister Stephen Doughty has expressed confidence in the UK Government’s legal position, particularly regarding the Jersey case. Insiders familiar with the matter suggest that Abramovich’s choice to assemble such a formidable legal team reflects the significant resources available to Jersey in this dispute.