Ex-Arsenal shareholder Usmanov faces tightened US, UK sanctions due to Kremlin ties.

• Alisher Usmanov, who was once a significant shareholder in Arsenal, is facing tightened sanctions from the US and UK.
• Usmanov first acquired a stake in Arsenal in 2007 and held a 30% stake in the club before selling it to Stan Kroenke in 2018.
• The recent sanctions on Usmanov do not directly impact Arsenal but serve as a reminder of the club’s former connection with the controversial figure.

Russian billionaire Alisher Usmanov, who was once a significant shareholder in Arsenal Football Club, is now facing tightened sanctions from the United States and the United Kingdom.

The U.S. Treasury Department has tightened sanctions on businesses and owners linked to the Russian government, with Usmanov, an Uzbek-born billionaire with close ties to the Kremlin, a prominent target.

Usmanov, who is already under sanctions, has faced multiple penalties from the West over the past decade due to his support for the Kremlin.

The new sanctions aim to financially hit individuals like Usmanov and their circles to prevent them from aiding Russia’s unjustified war in Ukraine and any military action.

Alisher Usmanov’s history with Arsenal

Usmanov first acquired a stake in Arsenal in 2007 and eventually became the club’s second-largest shareholder.

The Uzbek-born billionaire was known for his closeness to the Kremlin and held a 30% stake in the club through his investment vehicle, Red and White Holdings.

In 2018, Usmanov sold his entire stake to majority shareholder Stan Kroenke, ending his association with Arsenal.

The reason behind the sanctions

The recent tightening of sanctions on Usmanov and his associated businesses is due to his close ties with the Russian government.

The measures taken by the United States, the United Kingdom, and the international coalition aim to financially impact individuals like Usmanov and their circles.

The goal is to prevent them from supporting the Russian government and its military actions, particularly in Ukraine.

What other sanctions were announced?

Thursday’s announcement impacts 29 businesses in 20 regions, targeting those with suspected connections to the Russian military complex, particularly those linked to the Rosatom nuclear power plant.

US Deputy Treasury Secretary Brian Nelson asserts that the Kremlin will continue to face tough and wide-ranging sanctions as it does not back down from the war and seeks reinforcements. The sanctions, effective 14April 2023, target Usmanov, businesses, and individuals who receive funds from him or are financially connected to him.

The US government identifies Cypriot citizen Demetrios Sergides as an adviser to Usmanov, conducting financial affairs on his behalf.

Sergides runs The Sister Trust, a business that has ties to several companies, some of which are facing restrictions.

Additionally, individuals such as Kostas Giannakou, Marilena Georgiou, and Gulnoz Kocharova are now under sanctions for working within Almenor Holdings Limited.

The US Department of Commerce imposed sanctions on 36 companies on June 28, including businesses in China, Russia, the United Arab Emirates, Lithuania, Pakistan, Singapore, Great Britain, Uzbekistan, and Vietnam.

Usmanov-owned Cyprus-based companies and their senior officials are also being targeted. The Uzbek government remains silent on the fact that its citizens are subject to sanctions related to Russia.

Kroenke buys Usmanov out of Arsenal

In August 2018, American businessman Stan Kroenke made a significant move to consolidate his ownership of Arsenal Football Club by purchasing Alisher Usmanov’s 30% stake in the club.

Prior to this deal, Kroenke was already the majority shareholder, owning around 67% of the club through his company, Kroenke Sports & Entertainment (KSE).

Usmanov had acquired his Arsenal shares in 2007 through his investment vehicle, Red and White Holdings. Over the years, there had been speculation about a potential power struggle between Kroenke and Usmanov, with the latter occasionally expressing his dissatisfaction with the club’s management and performance.

The deal to buy out Usmanov’s shares was valued at approximately £550 million, taking the club’s overall value to around £1.8 billion.

This transaction allowed Kroenke to surpass the 90% threshold required to initiate a mandatory buyout of the remaining shares, effectively giving him full control over Arsenal.

With the completion of the deal, Kroenke aimed to bring stability and a long-term vision to Arsenal, focusing on making the club competitive both on and off the pitch.

Since then, the club has undergone several changes in management and player personnel but has continued to be a prominent name in English football and, under Mikel Arteta, are challenging for their first league title in nearly 20 years.