UK entities and residents are now blocked from doing business with Roman Abramovich and Oleg Deripaska, who own major stakes in steelmaker Evraz (EVR) and aluminium company EN+ (ENPL) respectively. EN+ is still trading on the London Stock Exchange, but Evraz's shares have been suspended. This will be a bitter for the investors that have piled in to Evraz in the past fortnight to take advantage of its hefty dividend and much-reduced share price.
“Today’s sanctions show once again that oligarchs and kleptocrats have no place in our economy or society,” said Foreign Secretary Liz Truss. “With their close links to Putin they are complicit in his aggression.”
The asset freeze blocks “any UK citizen, or any business in the UK, from dealing with any funds or economic resources which are owned, held or controlled by the designated person and which are held in the UK”, the government said.
Chelsea FC owner Abramovich - who also has a stake in mining giant Norilsk Nickel (RU:GMKN) - has always fought suggestions he is closely tied to the Russian president, while EN+ and subsidiary Rusal have been the subject of US sanctions in the past because of their links to Deripaska.
Evraz said earlier in the week it did not consider itself “to be an entity owned by, or acting on behalf or at the direction of, any persons connected with Russia and thereby caught by [EU sanctions]”.
Abramovich had already put Chelsea up for sale but that process will now be suspended. The government has given the club a “special licence” to continue operations but this could mean only season ticket holders will be able to attend matches, as new sales are suspended.
The new sanctions list also includes the bosses of oil giant Rosneft (ROSN), which BP (BP) still owns a major stake in, VTB Bank (RU:VTBR), Gazprom (RU:GAZP) and Transneft (TRNFP).
UPDATED: Evraz shares were suspended from trading on Thursday
