LONDON —- Chelsea owner Roman Abramovich has been sanctioned by the UK government as part of attempts to crackdown on wealthy Russians with assets in the country – on the 117th anniversary of the club’s founding.

The owner of the world and European club champions is one of the seven latest oligarchs who have had sanctions placed on them by ministers on the basis of his “close relationship for decades” with President Vladimir Putin.

A statement added: “This association has included obtaining a financial benefit or other material benefit from Putin and the government of Russia.”

The immediate outlook for the club, which has been granted a special licence to continue operating, is that no new players may be bought and no existing contracts may be renewed or renegotiated.

Within hours of the announcement Chelsea’ main shirt sponsor suspended its £40m-a-year deal. Mobile network provider Three had been Chelsea’s official partner since 2020.

Expenditure caps will be imposed on operating costs, such as travel and accommodation for next week’s Champions League tie against Lille in France. Reportedly, staff at the Stamford Bridge hotel have also been told they can take no new bookings.

Last week Abramovich said he intended to sell Chelsea after almost 20 years of ownership, and pledged net proceeds from the sale would be donated to “all victims of the war in Ukraine,” a statement greeted with some scepticism. The club had been valued at around £3bn.

Abramovich will also face a prohibition on transactions with UK individuals and businesses and a travel ban forbidding him to enter the UK. His jets and yachts can been seized.

The outgoing premiership side owner’s net worth is an estimated £9.4bn and he is one of the few oligarchs from the 1990s to maintain prominence under Putin.

The effect on Chelsea is immediate. The clun can continue to operate under special licence but the effects will be as follows:

• Chelsea fixtures will be fulfilled

• Only people who already have tickets to upcoming matches at Stamford Bridge can attend

• Contracted staff and players will continue to be paid

• Abramovich cannot profit from the sale of his club

• No new players can be signed.

Culture Secretary Nadine Dorries said: “Today’s sanctions obviously have a direct impact on Chelsea and its fans. We have been working hard to ensure the club and the national game are not unnecessarily harmed by these important sanctions.

“To ensure the club can continue to compete and operate we are issuing a special licence that will allow fixtures to be fulfilled, staff to be paid and existing ticket holders to attend matches while, crucially, depriving Abramovich of benefiting from his ownership of the club.

“I know this brings some uncertainty, but the government will work with the league and clubs to keep football being played while ensuring sanctions hit those intended. Football clubs are cultural assets and the bedrock of our communities. We’re committed to protecting them.”

A statement issued by the government confirming the latest sanctions said the licence published will allow Chelsea to “continue playing matches and other football related activity which will in turn protect the Premier League, the wider pyramid, loyal fans and other clubs”.

It adds that the licence will be kept “under constant review”.

The UK is the first nation to sanction Mr Abramovich, who the government has described as a “pro-Kremlin oligarch”.

The other six Russian oligarchs who have been sanctioned by the UK government on Thursday are:

• Oleg Deripaska, who has stakes in En+ Group – a major extractives and energy company

• Igor Sechin, chief executive of Rosneft – a Russian state oil company

• Andrey Kostin, chairman of VTB bank – the second largest bank in Russia

• Alexei Miller, chief executive of energy company Gazprom

• Nikolai Tokarev, president of the Russia state-owned pipeline company Transneft

• Dmitri Lebedev, chairman of the board of directors of Bank Rossiya – widely considered to be The Kremlin’s private bank

The seven latest individuals to be sanctioned have a collective net worth of around £15bn.

The government has now sanctioned more than 200 individuals and entities.

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