Roman Abramovich is facing further questions about his promise to donate the ‘net proceeds’ of any sale of Chelsea to victims of Russia’s invasion of Ukraine after the UK’s security minister admitted he did not know what the term meant.

The Russian billionare on Wednesday night sensationally confirmed Chelsea is up for sale and that he is writing off the £1.5billion debt he is owed by the club.

Abramovich, who is known to have links with the Russian regime, seeks to distance himself and Vladimir Putin from the sanctions imposed by the west over Russia’s devastating and illegal invasion. Meanwhile pressure mounts on the British government for the inclusion of the billionaire Russian heir to sanctions.

MailOnline reported on Wednesday morning however that Chelsea had been put on the market, with an asking price of at least £3billion. 

Abramovich stated in a statement posted on the Blues website that he had instructed his team to create a charity foundation, where all proceeds of the sale would be donated. 

“The foundation will benefit all the victims of war in Ukraine. It will provide critical funding for the immediate and urgent needs of the victims as well as support the long-term recovery efforts. 

On Thursday, the UK’s security minister Damian Hinds spoke to Good Morning Britain and said that Abramovich’s use of the term “net proceeds” was unclear. He then stated that sanctions will become even more severe in coming days.

Asking him if Abramovich understood the meaning of the phrase “net proceeds”, Mr Hinds responded: “No. Net proceeds can be defined in many different ways. Corporate financiers will tell you that.

Roman Abramovich is facing further questions about his promise to donate the 'net proceeds' of any sale of Chelsea to victims of Russia's invasion of Ukraine

Roman Abramovich faces further questions regarding his pledge to donate the net proceeds of Chelsea sales to Ukraine’s victims of Russia’s invasion.

UK security minister Damian Hinds told GMB he was not sure what Abramovich means by 'net proceeds'

GMB was told by Damian Hinds (UK security minister) that he isn’t quite sure what Abramovich means when he refers to ‘net proceeds.

“I want to make sure that the sanctions program works as well as it possibly can.

“If you take a look at the changes in the Rubel’s value and that of the Moscow Stock Exchange and see the problems these organisations now face, it is clear that they are having a bit.

“But, we want to get further. There is legislation in the Parliament. 

‘On Monday, the House will debate the bolstering unexplained wealth orders. A new register would make it completely transparent who is in possession of high-end properties and could use it to facilitate money laundering.

“We will go even further to inflict pain upon this regime.

Abramovich confirmed Chelsea is up for sale and that he is writing off the £1.5billion debt he is owed by the club

Abramovich confirmed Chelsea is up for sale and that he is writing off the £1.5billion debt he is owed by the club

Hinds also vowed Boris Johnson's UK Goverment will beef up the UK's sanctions on Russian individuals and organisations

Hinds promised that Boris Johnson’s UK Goverment would increase the UK’s sanctions against Russian persons and organizations.

‘We have been putting sanctions in place against individuals as well as organisations, and restrictions on the financial system,’ he added. 

‘There is more to come. It would be neither right nor wise of me to comment on individuals. I don’t think we should let individuals know what is going to happen to them before it happens.

‘I wouldn’t talk about an individual case unless and until there were measures in place. People should know we have already put in place sanctions on individuals and there will be more to come.’

Mr Hinds was not the only person left confused by the term, with many taking to social media to express their confusion.

One wrote: ‘Nobody would buy the club with a debt of $2billion. And what exactly does he mean by ”net proceeds”? It sounds like he’ll be able to recover the ‘loan’ he borrowed from the sale, and then any remaining pennies would go towards charity.’

Meanwhile, another added: ‘Wild if AbramovichAny funds from the Chelsea fire sale can be recouped. “Net proceeds to Ukrainian charities” is what you see. Russian oligarchs are being hurt by UK assets.

Swiss billionaire Hansjorg Wyss (R) says he could form part of a consortium to purchase the club

Hansjorg Wyss (R), a Swiss billionaire, says he would be willing to form a consortium in order to acquire the club

A second user simply tweeted “Net proceeds ”’.”.

Earlier, it was reported Abramovich had already begun a ‘fire sale’ of his sprawling London portfolio as he tries to offload Chelsea and £200million worth of properties – with an MP claiming the Russian billionaire is acting quickly to stop his assets being frozen.

Chris Bryant of Labour used parliamentary privilege in order to dodge legal action. Bryant claimed that the tycoon was selling his house and apartment to avoid being sanctioned. He also said that he fears the government won’t act soon enough.

Abramovich is worth £10.4bn ($12.5bn), according to Forbes, and owns a £150m Kensington mansion, a £22m penthouse, and more than £1.2bn of yachts, private jets, helicopters and supercars in Britain and globally.

Abramovich is also looking to offload his £200million London property portfolio within days, including his 15-bedroom mansion at Kensington Palace Gardens, valued at more than £150 million. The property sits on a road between several embassies and is guarded at each end

Abramovich is also looking to offload his £200million London property portfolio within days, including his 15-bedroom mansion at Kensington Palace Gardens, valued at more than £150 million. It is located on the road between many embassies, and has security at both ends.

The Russian's portfolio also includes a £22m three-storey penthouse at the Chelsea waterfront

The Russian’s portfolio also includes a £22m three-storey penthouse at the Chelsea waterfront

Abramovich has however instructed American bank The Raine Group to manage the sale of West London club Chelsea. 

Sources claim Abramovich believes Chelsea is worth more than £3bn – but the likelihood of receiving such offers appears small and is likely to inevitably lead to him lowering his expectations.

Swiss billionaire Hansjorg Wyss claims he has been approached and is considering an offer as part of a consortium which also includes Todd Boehly, the co-owner of baseball’s Los Angeles Dodgers. 

Although there are clear indications Abramovich may receive at most two formal offers from Chelsea this week, a buyout could still be possible if Abramovich is not. The UK Government has sanctioned Abramovich.

Boris Johnson was challenged by Sir Keir Starmer, Labour’s leader, in Parliament Wednesday to explain why Abramovich had not been sanctioned yet. The Prime Minister replied: “It’s not appropriate for me to comment on specific cases.”

Liz Truss (Foreign Secretary) has said that she had a “hit list” of oligarchs to target, but not all.

Abramovich never had UK citizenship and made his fortune by selling assets that he bought from the USSR when it collapsed. Abramovich strongly denied any close ties to the Kremlin and has not done anything that could be considered as a violation of sanctions.

Roman Abramovich’s journey from a penniless orphan into one of the richest men in the world

MailOnline by James Gant  

Abramovich, 55, has gone through a remarkable rise having been born a penniless orphan in Saratov, south west Russia, and raised by parents in Siberia from the age of four. After dropping out from two college, he started selling plastic dolls at a market stand. However, he has been accused for his ruthless determination in becoming one of the most successful men in the world by the age of 40.

His first move into making serious money came during the perestroika – meaning openness – reforms as the Soviet Union started to wind down under Mikhail Gorbachev. These changes loosen the grip of the government on business, allowing oligarchs to rise through legalization and purchase of state-owned businesses.

His fortune boomed when he linked up with Boris Berezovsky, who run the national car dealer firm Lada, but who was also close with President Boris Yeltsin. The rising businessman was able to gain access which allowed him to make huge amounts in post-Soviet Russia.

When the USSR’s industry was carved up at the top table, Abramovich was there to make his first few billions – mainly by buying up oil company Sibneft. Berezovsky and Abramovich purchased the firm for just £100million using the controversial loans-for-shares program – when it was estimated to be worth around £600m.

It was the starting blocks for the tycoon’s huge wealth, with him raking back around £1.8bn from the sale of Sibneft. Evraz, the steel and mining titan listed on London’s stock exchange, is where Abramovich finds the bulk of his wealth in the UK. He is also the biggest shareholder.

Aside from business, Abramovich also worked in politics, becoming the governor of the far eastern Chukotka region in 2000 – after winning 92 per-cent of the vote – and pumped £180million into it. Abramovich, who was divorced from Irina in 2007, lost several properties. He has five children with Irina. She bagged a £30million home on the Riviera called Chateau de la Croe as well as an estate in Sussex called Fyning Hill, which Abramovich had bought for £18million. 

He fared much better than Olga, his first wife. Olga was a poor student in the Soviet Union. Abramovich was 20 years old when he spotted Olga (the 23-year-old daughter a top-ranking diplomat) in a packed restaurant in Ukhta. It was 1987. He was timid. Fearing Olga would not accept him, Abramovich sent over a friend to request that the student in geology dance. Later they married and shared a flat with Olga’s daughter Nastya, who was from an earlier relationship.

After Olga’s divorce from Abramovich in 1989, despite him working hard to earn his fortune, he left only enough money for her to last two years. She rented a flat further from Moscow for her, with the understanding that she and her child would move later to the Tsvetnoi Boulevard flat because Olga wanted Nastya attend an even better school.

Abramovich quickly fell in love with Irina (a former Aeroflot stewardess based in London) and they were married in 1991, as the USSR collapsed. When she was a flight attendant, Ms Malandina of Chelsea met Abramovich. When she was just two years old, her father passed away. She grew up poor in Soviet times.

He became a prominent but quiet figure in Russia’s post Soviet rollercoaster world and politics to become a well-known West West celebrity as the owner of the London soccer club. They lived together in what was described as a “gilded box” with British and Russian intelligence security guards.

They parted on good terms in 2007 – with their divorce settlement a closely guarded secret but thought to be £150million – and did not speak ill of each other. Abramovich was married to his third wife, Dasha Zhukova (magazine editor) in 2008. However, they split in 2017. Dasha is now living with Stavros Niarchos, a billionaire shipping magnate. Dasha, who had Aaron Alexander and Leah Lou together with her husband, said she was committed to raising the children jointly.

Court documents filed in New York showed Abrahmovich and Zhukova finalising their divorced in 2017 showed the settlement included over £90million worth of property to Dasha – including a Manhattan mansion. Recently, he was romantically involved with Diana Vishneva, a ballerina.