Abramovich ally fights UK sanctions in landmark court case

Evraz

20/07/2023 11:59

By Sam Tobin
       LONDON, July 20 (Reuters) - A billionaire ally of former
Chelsea Football Club owner Roman Abramovich on Thursday asked
London's High Court to overturn British sanctions imposed on
him, in the most significant test of Britain's sanctions regime
to date.
    Eugene Shvidler, whose net worth is estimated by Forbes
magazine at $1.6 billion, became the "poster boy for Russian
sanctions" when his two private jets were seized in March 2022,
just after Russia's invasion of Ukraine, his lawyers argue.
    The businessman was sanctioned that month by Britain's
Foreign Office on the grounds of his association with Abramovich
and his position as a non-executive director of London-listed
Russian steel producer Evraz  EVRE.L .
    Britain also cites Shvidler's role at Russian oil company
Sibneft, sold by Abramovich in 2005, as evidence he obtained a
financial benefit from Abramovich.
    But Shvidler – a dual British-U.S. citizen – argues that
Britain was wrong to impose sanctions just because of his
relationship with Abramovich, whom he describes as a close
friend.
    His lawyers say Shvidler did not receive any financial
benefits from Abramovich, saying any payment he received from
Evraz or Sibneft was from those companies and not Abramovich.
    Shvidler's case will be closely watched as the first
substantive challenge to British sanctions imposed following
Russia's invasion.
    Shvidler has no relationship with Russian President Vladimir
Putin, no involvement in Russian politics and has not even been
to Russia since 2007, his lawyer David Anderson told the High
Court on Thursday.
    The effect of British sanctions has been to "destroy his
ability to deal with his assets and conduct his business, to
disrupt his life and...to shatter his reputation", Anderson said
in court filings.
    However, Britain's Foreign Office argues his association
with Abramovich – whom it says has benefitted financially from
supporting Putin's government regime – justifies the sanctions.
    Britain believes sanctioning Shvidler will "incentivise him
to put pressure on Mr Abramovich to encourage President Putin to
cease or limit" Russia's war in Ukraine, its lawyer James Eadie
said in court filings.
    Shvidler being sanctioned sends a signal to him and others
that "there are negative consequences to having implicitly
legitimised the government of Russia's actions", Eadie said.

 (Reporting by Sam Tobin, Editing by Angus MacSwan)
 ((Sam.Tobin@thomsonreuters.com;))