Wednesday was not a fun day for Russian billionaire Roman Abramovich. Though he has long denied earning his fortune as an “oligarch” or even being particularly close to Russian President Vladimir Putin, on March 11 Abramovich was added to the UK’s sanctions list. That action resulted in the seizure of his $150 million London mansion plus two other properties in London and a $25 million country estate. It also potentially froze his plans to sell the Chelsea football team, or at least would make it difficult for him to be the beneficiary of the sale if those plans continue. That sale could fetch $2-3 billion.
On March 15, the European Union added Roman to its sanctions list. But for the last month, not much has happened to Roman’s European assets. He also has notably NOT been sanctioned by the United States. There have been reports that claim American and European authorities have backed off from pursuing Roman after he appeared to be attempting to broker a peace deal between Russia and Ukraine. It’s unclear if European authorities ran out of patience or what, because on Wednesday the sanctions noose got a bit tighter around Roman Abramovich’s neck.
Recent Developments in Sanctions
First up, France. French authorities revealed that they have seized 40 properties linked to sanctioned individuals. Not all of these properties belong to Abramovich, but according to the Wall Street Journal, a number of them are directly owned by the Russian billionaire. The most significant Abramovich-owned seized property is a luxury villa on the French Riviera called Chateau de la Croe.
Chateau de la Croe: A Luxury Villa
Chateau de la Croe is located in Cap d’Antibes, on the French Riviera between Nice and Cannes. The Chateau sits on 12 acres and was built in the late 1920s for the general manager of Associated Newspapers. In May 1938, two years after his abdication, Queen Elizabeth’s uncle, King Edward VIII, began leasing the Chateau. His wife, American-born Wallis Simpson, proceeded to give the home a massive renovation.
In 1948, Winston and Clementine Churchill celebrated their 40th wedding anniversary with the Duke and Duchess at The Chateau de la Croe. Between 1950 and 1957, the chateau was owned by shipping magnate Aristotle Onassis. He had to sell it after his wife literally caught him in bed with her best friend. Interestingly, Aristotle sold the property to his scorned wife’s brother, a rival shipping magnate named Stavros Niarchos.
Abramovich's Acquisition and Renovation
Roman Abramovich acquired Chateau de la Croe in 2001 for an undisclosed amount. Prior to his acquisition, the home had fallen into a sad state of disrepair and was actually occupied by squatters. After evicting the squatters, he proceeded to spend an estimated $40 million on lavish renovations. Over a four-year construction period, Roman repaired and restored the chateau while also adding a 50-foot rooftop pool, plus a basement movie theater/gym.
The current estimated worth of Chateau de la Croe is around $120 million. French authorities have also reportedly seized two of Roman’s properties on the island of St. Bart’s.
Assets in Jersey
Now let’s leave France and head over to Jersey. Officially known as the Bailiwick of Jersey and located 14 miles off the coast of Normandy, Jersey is the largest of the Channel Islands, spanning 45 square-miles. A thousand years ago, Jersey was owned by various members of the British royal family. The islands were surrendered to France in the 13th century, but its inhabitants remained loyal to the English crown without ever becoming part of France or England. Today it is a self-governing democracy with a constitutional monarchy.
On Wednesday, the Jersey Law Officers department reported that it had frozen $7 billion worth of assets that allegedly belonged to Roman Abramovich. Let me repeat that: $7 billion. For context, according to our current estimate, Roman Abramovich’s net worth was $14 billion. When we computed his net worth to be $14 billion, we took into account his known equity stakes in Russian steelmaker Evraz and Norilsk Nickel, plus the dividends and sale proceeds he has earned over the decades related to companies such as Sibneft and Aeroflot.
Hidden Wealth and Future Implications
The question arises: What is Roman Abramovich’s actual net worth? Clearly, half of Roman Abramovich’s known net worth was not just seized. This appears to be $7 billion worth of wealth that was totally off the books. How many more hidden billions are out there in secret Abramovich accounts?
The situation surrounding Abramovich raises serious questions about transparency in wealth and asset ownership among global billionaires. As governments continue to crack down on oligarchs and individuals with questionable ties, the implications of these sanctions could have far-reaching effects on Abramovich’s future and that of his assets.
Final Thoughts
In conclusion, the recent developments surrounding Roman Abramovich highlight the complexities of wealth, power, and international relations. As the sanctions tighten, it is clear that billionaire oligarchs like Abramovich are not just facing financial repercussions, but also a significant impact on their public and personal lives.
As the world watches, the unfolding story of Abramovich serves as a reminder of the ongoing challenges in addressing wealth inequality and the role of government intervention in the lives of the ultra-wealthy. The future is uncertain, but one thing is clear: the landscape for billionaires is changing rapidly.
