Chelsea's bank account suspended by Barclays after UK sanctions on Roman Abramovich

The bank accounts of Chelsea Football Club have been "temporarily suspended" with Barclays after the UK imposed sanctions on its Russian owner Roman Abramovich in the wake of Moscow's war on Ukraine. Owing to the measures on Abramovich, all his assets have also been frozen in London. However, the team has been allowed to continue operations under specific measures, Sky Sports reported.

The action comes as Barclays needs time to assess the range of football-related activities the club will be allowed to pursue amid the prevailing sanctions on the Russian billionaire. In addition, it will also evaluate the license offered to the club by the UK government. Meanwhile, the west London club is currently operating under a government-approved license that allows them to function restrictively.

Restrictive functions of Chelsea FC

Currently, Chelsea are not allowed to take any loans or sign any player, provided sanctions are in place when the next transfer window opens. No tickets to Chelsea's games will be sold, and only those with previously purchased tickets will be allowed to attend the matches. In addition, no merchandise of the team will be sold online or offline. The club can only spend $26,000 per game just for travel costs.

Barclays will evaluate the risk of carrying on with its banking services to Chelsea. The bank is currently reluctant to conduct business with figures sanctioned by London, Daily Mail reported. Moreover, with Abramovich's alleged links to Russian President Vladimir Putin, the prohibition on transactions with UK individuals and businesses facing a travel van and transport sanctions" are also perceived to be long-term.

Chelsea seeks negotiations to secure exemptions

The wide-ranging restrictions will lead Chelsea FC to lose money on occasions more than one. Apart from the aforementioned measures, Chelsea are now only allowed "reasonable costs" towards hosting home matches, values "not exceeding £500,000 per fixture, per team."

In addition, they will no longer be able to sell players or offer new contacts. Again, all the prize money and TV broadcast payments that Chelsea would recieve in the wake of the sanctions on its owner, will be frozen.

Meanwhile, the football club is currently in negotiations with the UK government over securing exemptions to the restrictions placed on them, particularly regarding the sale of tickets. They are also persuading the government to raise the £500,000 cap on match-day operating costs. However, there has hardly been a significant breakthrough.

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