A global effort to scrutinize one of Russia’s richest men, Roman Abramovich, has rebounded, luring a Portuguese rabbi into a trap, creating confusion over the sale of the billionaire’s British football team and freezing some of his US assets.
Representatives for Mr. Abramovich did not respond to requests for comment.
The prominent Portuguese rabbi who helped Mr. Abramovich obtain Portuguese citizenship was arrested Thursday as part of a wider investigation in Portugal linked to alleged influence peddling, forgery, money laundering and tax fraud, according to people familiar with the case.
Rabbi Daniel Litvak oversees in Porto the process of confirming claims to Portuguese citizenship based on descent from Sephardic Jews expelled from the Iberian Peninsula at the end of the 15th century.
The Jewish Community of Porto, the organization issuing the certificate, said there was a “smear campaign” against it. Mr. Abramovich received Portuguese citizenship last year. He also holds Israeli and Russian citizenship.
The imposition of Mr. Abramovich by British sanctions also prevented the sale of his football club to Chelsea, a process he had initiated shortly before he was on the British target list. The club’s original bid deadline was set for Tuesday, but the process is now in disarray as advisers and people close to Mr. Abramovich struggle to determine how to move forward, according to people familiar with the matter.
The UK Treasury said Mr Abramovich would have to apply for a license to exclude any sale of the club from UK sanctions.
Chelsea executives, meanwhile, are lobbying the government to loosen some of the terms of a separate license it has been given to the club under which it can continue to operate, according to people familiar with the matter. One such restriction is the £20,000 spending limit, or about US$26,000, for travel to away games. Chelsea’s next match will take place at home on Sunday.
Britain’s sanctions have had another impact on London, spawning a slew of rules that violate even the routine transactions of Mr. Abramovich’s property, including blocking rent he owes Queen Elizabeth.
As The Wall Street Journal previously reported, in the US, several hedge funds that received investments from Mr. Abramovich have been ordered to freeze his assets. According to the magazine, Mr. Abramovich has been trying to sell shares in the funds on the secondary market since at least the end of February.
UK agencies, like other governments, including the US, have the power to temporarily freeze the assets of individuals or entities within their jurisdiction without proof of criminality. In some cases, they may ask other governments to cooperate.
Owners are generally prohibited from selling or capitalizing on them until the sanctions are lifted or successfully challenged. However, governments generally cannot take possession of assets, except in cases where lengthy litigation is often required, requiring proof of a violation of the law. However, the UK government is considering laws that would give it the power to seize assets under sanctions.
Two of Mr. Abramovich’s megayachts – objects of admiration among yacht aficionados – have gained wider recognition under the sanctions. Easily accessible online ship-tracking sites report near-real-time ship movements and those of other Russian oligarchs under sanctions.
In recent days, French and Italian authorities have confiscated several yachts owned by Russian billionaires under EU sanctions. Mr. Abramovich was not subject to EU sanctions.
Mr. Abramovich’s 533-foot superyacht Eclipse passed through the Strait of Gibraltar into the Mediterranean on Saturday afternoon after leaving Philipsburg in the Netherlands Antilles in the Caribbean on March 3, according to ship-tracking website FleetMon. Meanwhile, the 460-foot My Solaris arrived in Tivat, Montenegro on Friday, having left Barcelona, Spain three days earlier, according to FleetMon.
In the case of Portugal, authorities opened a criminal investigation earlier this year over allegations that Rabbi Litvak falsely testified to the Sephardic origins of Mr. Abramovich and others, according to a statement by the Porto Jewish community released March 6.
According to state broadcaster RTP, Rabbi Litvak was interrogated by Portuguese authorities late on Friday and released, but is barred from leaving the country or coming into contact with other suspects in the case.
— Benoît Faucon and Francis X. Rocca contributed to this article.
Write to Patricia Kowsmann, [email protected] and Max Colchester, [email protected]
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