End of the Roman empire: Abramovich starts firesale of his London assets

Roman Abramovich has sensationally confirmed that Chelsea is up for sale, with the Russian oligarch slapping a £3billion asking price on the London club while also writing off the £1.5billion debt he is owed from it.

In a surprise development just after 6pm, Abramovich broke his silence to confirm he is in the process of selling Chelsea FC – with proceeds of the prospective sale to be donated to the victims of war in Ukraine. 

MailOnline reported on Wednesday morning that the club had been put on the market, with a view to recouping at least £3billion, as Abramovich seeks to distance himself from Russian President Vladimir Putin and sanctions imposed on Russia by the west over its devastating and illegal invasion of Ukraine.

In a statement, Abramovich confirmed: ‘I would like to address the speculation in media over the past few days in relation to my ownership of Chelsea FC.

‘As I have stated before, I have always taken decisions with the Club’s best interest at heart. In the current situation, I have therefore taken the decision to sell the Club, as I believe this is in the best interest of the Club, the fans, the employees, as well as the Club’s sponsors and partners.’

Abramovich said he will not be asking to be repaid £1.5billion in loans he has granted the club during 19 years of injecting cash to elevate the team into one of the most successful in Europe. 

‘The sale of the Club will not be fast-tracked but will follow due process. I will not be asking for any loans to be repaid,’ he said. 

‘This has never been about business nor money for me, but about pure passion for the game and Club. Moreover, I have instructed my team to set up a charitable foundation where all net proceeds from the sale will be donated.

‘The foundation will be for the benefit of all victims of the war in Ukraine. This includes providing critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery.’

The speed of Abramovich’s pending exit from Chelsea is striking as he was trying to instigate a plan this past weekend to relinquish some control in order to keep the club under his ownership.

But as Russia’s war on Ukraine entered a seventh day, pressure was growing on the British government to include him among the wealthy Russians to be targeted in sanctions.

Earlier, it was reported that the billionaire had already begun a ‘fire sale’ of his sprawling London portfolio as he tries to offload Chelsea FC for £3billion and £200million worth of properties – with an MP claiming the Russian billionaire is acting quickly to stop his assets being frozen.

Labour‘s Chris Bryant, using parliamentary privilege to avoid legal action, alleged the tycoon is selling his home and an apartment because he is ‘terrified of being sanctioned’, adding that he feared the government will soon run out of time to act.

Abramovich is worth 10.4bn ($12.5bn), according to Forbes, and owns a £150m Kensington mansion, a £22m penthouse, and more than £1.2bn of yachts, private jets, helicopters and supercars based in Britain and around the world.

Chelsea FC is his most valuable British asset, after the oligarch transformed its fortunes from outside challengers to Premier League giants with the help of Jose Mourinho and huge signings like Didier Drogba, so its sale will be a personal blow to the billionaire industrialist.

Today, Labour Leader Sir Keir Starmer pressed the Prime Minister on why Abramovich has not been sanctioned, claiming he had ‘links to the Russian state’ and ‘public association with corrupt activity and practices’.

Mr Johnson said it is not ‘appropriate’ for him to comment on individual cases. Foreign Secretary Liz Truss has previously said she has a ‘hit list’ of oligarchs they are targeting, but has not named all of them. 

Kremlin-linked billionaires are also facing fresh threats of asset seizures from the US, with Joe Biden using his State of the Union address to say America was coming to ‘seize your yachts, your luxury apartments, your private jets’.

Abramovich has never held UK citizenship, and made his fortune selling assets purchased from the state when the USSR broke up. He vehemently denies being close to the Kremlin or doing anything that would merit sanctions.

Immigration officials are reportedly under instructions to make it impossible for him to base himself in the UK. Scrutiny from MPs, and his status as the Britain’s best known Russian oligarch, makes him all the more vulnerable.

Abramovich has seven children from two of his ex-wives. The eldest, Anna, 29, is a Columbia University philosophy graduate who lives in New York, while Arkadiy, 27, is an industrial tycoon with substantial oil and gas investments. 

Sofia, 26, lives in London and the ‘wild child’ ‘of the family, recently posted a message on Instagram attacking Vladimir Putin for his invasion of Ukraine. Less is known about Arina, 20, and Ilya, 18, or Aaron, 11 and Leah Lou, 7, who were both born in New York to his third wife, Dasha. 

Abramovich’s current location is unknown, but he has recently been in Belarus ‘trying to help’ negotiate an end to Russia’s war against Ukraine following its illegal invasion of the country.  

The conflict entered its seventh day today, with Ukrainian president Volodymyr Zelensky warning Russia was seeking to erase Ukraine and its people after officials said 2,000 civilians had been killed.   

As pressure grows to punish anyone seen having aided Putin’s regime, here is a round-up of Abramovich’s assets in Britain, as well as yachts, cars and planes that are strewn across the world. 

‘UP FOR SALE’  

Chelsea FC: £3bn

The West London club is the jewel of Abramovich’s empire, so his decision to put it up for sale for a reported £3bn – as revealed today – must have been personally painful. 

It is understood that the Russian is targeting American buyers as investment from China, the Far East and Eastern Europe has dried up for clear political reasons, although there are major doubts that any potential buyer will meet his ambitious valuation. 

American bank Raine Group is overseeing the sale, with prospective buyers given until just Friday to file ‘indicative bids’, the NY Times reported – suggesting Abramovich is keen to seal a quick deal. 

Raine Group first acted for Chelsea in 2018 after talks with US private equity firm Silverlake and British billionaire Jim Ratcliffe broke up without reaching an agreement. 

The club has effectively been for sale ever since due to Abramovich’s conflict with the UK government after the Home Office declined to issue him a visa, with Russia’s invasion of Ukraine giving him fresh impetus to sell.

Chelsea declined to comment.

Abramovich wants a minimum of £3bn to sell Chelsea as he invites bids for the club. But there are emerging doubts that the Russian oligarch will receive anywhere near that mark.

There is a sense that securing an American buyer, potentially through a hedge fund, might be the best route towards a sale. 

But Abramovich’s links with a Russian regime that has caused so much destruction in Ukraine could lead to reluctance from interested parties to deal with Chelsea.

Swiss billionaire Hansjorg Wyss, worth £4.3bn, claims he has been approached to consider buying Chelsea, potentially as part of a consortium.

‘Abramovich is trying to sell all his villas in England, he also wants to get rid of Chelsea quickly,’ Wyss told Swiss newspaper Blick.

‘I and three other people received an offer on Tuesday to buy Chelsea from Abramovich. I have to wait four to five days now. 

‘Abramovich is currently asking far too much. You know, Chelsea owe him £2 billion. But Chelsea has no money. As of today, we don’t know the exact selling price.’

However, there is doubt whether a consortium style takeover would have longevity given the huge financial demands expected at a club the size of Chelsea.

Nevertheless, it is clear now that Abramovich is preparing his Chelsea exit strategy.

The Russian oligarch has spent time in the United Arab Emirates in recent weeks with a view to transferring part of his wealth there, Sportsmail understands. 

But any hopes of a quick sale of Chelsea remains in the balance due to what will be a reluctance of any interested parties to go anywhere near the absolute minimum £3bn Abramovich wants.

Sources claim Abramovich believes Chelsea is worth north of £3bn – as much as £4bn – but the likelihood of receiving such offers appears remote.

It seems inevitable that the Russian businessman will have to lower his expectations, but whether anyone is willing to offer as high as the £3bn that he would consider is unclear.

Abramovich attempted to step back from the daily running of Chelsea on Saturday, in the wake of Russia’s invasion of Ukraine.

The oligarch has tried to hand the ‘stewardship and care’ of Chelsea to the club’s charitable foundation trustees. 

That led the Charity Commission to contact the Stamford Bridge club for more detail on Abramovich’s plans, after several of the trustees raised concerns over technicalities.

Labour MP Chris Bryant has called for the UK Government to impose sanctions on Abramovich after a number of Russian oligarchs have already fallen under such penalties.

Abramovich is understood to have attempted to hand control of Chelsea to the foundation trustees in a bid to protect the club.

The Chelsea owner would not receive any protection from sanctions through stepping away from daily control at Stamford Bridge.

But the club’s trustees will insist on an impenetrable indemnity policy before agreeing to Abramovich’s plan to pass over stewardship of the club to its charitable foundation.

Abramovich’s proposal, which was announced on Saturday night, is in the balance with a number of trustees extremely apprehensive about accepting stewardship of the club.

And Sportsmail has learned that one of the main conditions the trustees will insist on is the inclusion of a robust indemnity insurance policy to ensure they are not liable for any financial ramifications the club may suffer while they are put in charge.

Trustees hold a number of concerns in relation to Abramovich’s plan, which was sprung on the trustees with very little notice on Saturday night.

Conflict of interest is understood to be among the key apprehensions, while the morality of being the face of a football club and business that has been linked to the Russian regime that has invaded Ukraine is another major consideration for trustees.

However, the sheer responsibility of playing such a key role within a business that turned over £434.8m for the previous financial year is known to be the leading concern amongst a number of trustees. 

Chelsea has instructed lawyers to start building the legal framework to facilitate Abramovich’s stewardship recommendation and those individuals in line will seek a strong protection policy before agreeing.

During the interim there will be a period of status quo, which will allow trustees who include: Chelsea chairman Bruce Buck, John Devine, a partner at the law firm Muckle LLP, club director of finance Paul Ramos, women’s head coach Emma Hayes, executive director of anti-discrimination group Fare, Piara Powar, and the chairman of the British Olympic Association, Sir Hugh Robertson, time to consider whether they want to be part of the process.

Chelsea are aware of the problems they may face in convincing trustees and are said to be exploring other options.

London property empire: £200m +

Chris Bryant claim in the Commons that Abramovich is looking to sell ‘his home and a flat’ is thought to refer to his 15-bedroom mansion at Kensington Palace Gardens, valued at more than £150m, and a three-storey penthouse at Chelsea Waterfront, worth an estimated £22m. 

Staff at his Kensington property, which is on the same road as several high-security embassies, were told to expect viewings, according to The Times. 

Chinese buyers are said to be interested in the mansion, but a sale could be a drawn out protracted affair given the cost and due diligence agents would have to carry out.

Abramovich has become a less frequent visitor to London in recent years following issues with his entrepreneurial visa. He has Israeli and Portuguese citizenship on top of being a Russian national.

His whereabouts are not known after he was reported to be in Belarus to assist as an unlikely broker in peace talks between Russia and Ukraine on Monday.

Abramovich’s London property portfolio is also said to include a flat in Cheyne Terrace, Chelsea, which was purchased for £8.75million in 2017 and includes a high-tech temperature-controlled wine cellar.

It is close to three other properties that overlook the Thames, bought for £25million, that he had once intended to knock together and turn into a £100million super-home.

However Abramovich, who made his money selling assets acquired from the state following the fall of the Soviet Union, scrapped the plan and sold up after he relented to local uproar.

Abramovich became an Israeli citizen in 2018 after his British visa expired and reportedly owns most of the properties through a holding company called Fordstam

And land registry records show that since the expiration of his visa he transferred 11 properties to the business.

His Kensington Gardens mansion, which originally cost him £90m, is close to the homes of steel magnate Lakshmi Mitta and billionaire business magnate Wang Jianlin.

Abramovich also owns homes in Russia, Sardinia, France, the West Indies and the US.  

He lost a number of properties during his 2007 divorce from his second wife Irina, with whom he has five children, including a £30m home on the Riviera called Chateau de la Croe, as well as an estate in Sussex called Fyning Hill, which he had bought for £18million.     

OTHER ASSETS 

Yachts, jets and cars: £1.26bn + 

Despite being highly secretive and preferring a life out of the spotlight, Abramovich has still led a glitzy lifestyle, with two superyachts worth £930m, £16m worth of luxury cars and private planes aplenty. 

The billionaire recently bought a £264m Boeing 787-8 Dreamliner jet. 

The 50-seater aircraft is the world’s most expensive private jet with a base cost of £188m and a rumoured £76m of additional equipment to the billionaire’s taste, Forbes reported, citing industry sources.

According to flight tracking websites, the plane was flown from Monaco to Moscow on Thursday, amid heightened speculation Abramovich was due to face sanctions. It is unclear if he was actually on board. 

Meanwhile, his £50m Gulfstream G650ER jet – registration LX-Ray – took off today from Turkey headed for an unknown destination, according to unconfirmed reports from Twitter account @RuOligarchJets, run by amateur flight tracker Jack Sweeney. 

His new Boeing 787-8 Dreamliner is understood to have been built in 2015 for PrivatAir, a Swiss airline operator, but was never handed over to the company as it filed for bankruptcy in 2018.

The plane – which replaces his Boeing 767-33AER which was valued at £128m and is currently on the market – is one of only 250 such aircraft in the world and is primarily owned and operated by major airlines. 

The 787-8 is 187 feet in length, and commercial models are able to carry 223 passengers.

For those who do not own their own Boeing 787 Dreamliner like Mr Abramovich, but still wish to charter one for a flight, they can expect to pay around £56,000 ($74,000) per hour – meaning an eight-four flight from London to New York could cost around £450,000 ($600,000).

Only two such planes are thought to be privately owned – one used by Mexico’s leader as his presidential plane and the other used by UAS International Trip Support, which operates global luxury charter jet service ‘Dream Jet’.

A spokesman for Millhouse, the company that manages the 55-year-old Abramovich’s assets, declined to comment on his purchase of the Boeing 787 when contacted by MailOnline in December. 

Abramovich’s jets, which have two pilots reportedly on £160,000 a year, are personalised inside with a study and supposedly a bedroom with a mirror on the ceiling.

Once asked if the mirror helped improve his sex life, Abramovich replied: ‘No, but it does allow me to shave in bed.’

He also had three Eurocopter helicopters, two of them that were based in England, which meant he could avoid congestion in London. The helicopter pilots were also reportedly paid around £90,000 per year.

Meanwhile, the Chelsea FC owner’s new £430m superyacht Solaris is currently moored in Barcelona’s marina. The 460ft vessel is the most costly custom-made superyacht ever built, with 48 cabins across eight decks, a crew of 60 and space for 36 guests.

Built in Bremerhaven, Germany, Solaris recently completed sea trials and was briefly berthed in Barcelona before moving across to Cape D’Ail near Monaco, and then Antibes.

It is thought to be his second superyacht after the Eclipse, a slightly longer boat which has been valued at £500m. All his guests can be accommodated in luxurious state rooms and travel between the boat’s eight decks by lift.

As well as a gym, sauna, Jacuzzi and at least one swimming pool come as standard on boats such as these and, if the Solaris is anything like the 530ft Eclipse, it will also have a beauty salon, complete with beautician and hairdresser.

Eclipse has a night club with a dance floor but Solaris instead has an outdoor ‘beach club’ at the aft section of the upper deck.

Solaris has a flotilla of 20 high-speed jet-skis and at least one helicopter to ferry guests from ship to shore. And it’s expected that Abramovich will also invest in a personal submarine. 

Abramovich also owns a fleet of supercars valued at more than £16million. Among the high end vehicles are a Porsche 911 GT1 Evo, a Ferrari FXX, a Aston Martin Vulcan and a Maserati MC12 Corsa.

The fleet also includes a Pagani Zonda R, of which only 15 have ever been produced and come with a price tag of £2.5m.

The incredible car collection was first shown off by Abramovich while driving with his friends at the Nurburgring race track in Germany in 2016.

Business interests: Several billion pounds 

Roman Abramovich has a large shareholding in the Russian steelmaking firm whose materials experts say are used to make the military tanks which are invading Ukraine.

The Chelsea owner transferred his shares in Evraz, the London-listed Russian steelmaking giant, directly to himself from an offshore company on February 16, eight days before Vladimir Putin ordered the Ukraine invasion.

Analysts have told Sportsmail that the transfer of the 28.64% shareholding, from Virgin Islands-registered Greenleas International Holdings Ltd, could make it less vulnerable to the sanctions which have followed the invasion.

It could also make the shareholding easier to sell. The value of the shares have plummeted since Putin’s forces attacked Ukraine.

Greggory Kuczyński, director of the Eurasia Program at the Warsaw Institute, told Sportsmail: ‘There was a risk that this offshore company would become a subject of sanctions. Evraz steel is used to build tanks, amongst other things. 

‘The company is important for the Russian arms industry, in this sense. It is important for Russia’s war plans, including with regard to Ukraine.’

A spokesperson for Abramovich said Evraz in Russia only produced steel for ‘rail and construction.’ 

In a 2017 document produced by Evraz as part of an investigation into steel importation in the US, Evraz said its Chicago operations produced ‘several products critical to US National Security… such as armoured plate for the US military.’

Evraz could not be reached for comment by Sportsmail.

The Warsaw Institute, an international relations think tank specializing in Eastern Europe, is uncertain whether Abramovich also owns shares in the Russian oil giant Rosneft, having invested nearly £225million in shares when it floated in 2006. 

Rosneft is one of Russia’s largest producers of crude oil and another major supplier of its military. The Rosneft website, which includes company details, was not accessible from the UK on Tuesday.

It is understood that Abramovich has used Jewish connections in Ukraine to attempt to broker peace discussions between Russia and the country it has invaded. 

Abramovich has substantial business interests in Ukraine, with an Evraz plant in the Donbass area of the country since 2010.

Abramovich can ill afford a prolonged war and sanctions designed to strangle and collapse the entire Russian economy, because he has so much invested in it.