Mark Goodge <
use...@listmail.good-stuff.co.uk> posted
>On Thu, 26 May 2022 22:10:42 -0700 (PDT), Ben <
benada...@gmail.com>
>wrote:
>
>>Let's keep politics out of this and focus on the legality/morality
>>of what happened to Abramovich.
>>
>>Essentially, he spent a considerable sum buying Chelsea FC (£140 million),
>>with further investments (£1 billion) and loans (£1.5 billion).
>>
>>Now because of circumstances beyond his control, he is forced to sell
>>it without seeing so much as a penny.
>
>The circumstances are not beyond his control. He could quite easily have
>made it clear that he has broken all links with the Russian regime and
>has chosen instead to align himself with the west. He has not done so.
This argument seems to be predicated on the idea that the British
government can reasonably confiscate the UK assets of any non-resident
who does not publicly declare his agreement with some aspect of British
foreign policy.
I do not recall previously hearing any such argument, or any such legal
principle. Nor does it seem compatible with traditional Western thinking
on human rights. Was it introduced before Mr Abramovich bought Chelsea
FC, or after? Does it also apply to UK residents? Does the individual's
declaration have to be genuine and truthful, or purely formal? What
purpose is it supposed to serve?
>Presumably, from a purely business point of view, he still thinks that
>there's more money to be made by staying loyal to Russia and losing is
>EU assets than by renouncing his loyalty to Russia and losing all his
>Russian assets. And I suspect that he is probably right.
Yes. The same would apply to British investors who choose to stay loyal
to Britain in any circumstances. Presumably you would approve of foreign
countries expropriating their overseas assets too.
Irrespective of any ethical points, such a system doesn't seem very
encouraging to international investment, when investors who refuse to
renounce their allegiance to their country of birth can be deprived of
their assets without recourse.
>It is, no doubt, unfortunate for him that he has had to make this choice
>in the short term. But it is, nonetheless the kind of risk that is
>unavoidable when investing in a foreign country.
It might be in North Korea, or African banana republics. But one might
have hoped that that wouldn't be the case in Britain, which has
generally tended to uphold fairness and due process. Partly as a a
result of that policy it has benefitted greatly from foreign direct
investment.
>You can never be
>certain that your domestic obligations will never conflict with those
>where you invest. And Mr Abramovich is far too shrewd an investor not to
>have been aware of that from the outset.
What obligations does Mr Abramovich have to the UK, other than to ensure
his commercial enterprises obey the law ? Is he obliged to support UK
foreign policy? Was he informed of this obligation when he bought
Chelsea FC twenty years ago?
>When the war is over and Putin is long gone he will still be a very
>wealthy man and will be able to invest once again in the UK. Maybe he'll
>buy Manchester Utd instead and make them a decent football team again.
What has that got to do with the rights and wrongs of confiscating his
assets?
>In the meantime, he neither needs nor deserves our sympathy for the fact
>that he, like very many people all over the world, have lost money as a
>result of the Russian invasion of Ukraine.
He may not need it, but he has mine. Moreover, I doubt that this new
British policy will improve our future prospects of inward investment
from other countries whose actions we may not always approve of.
>Mr Abramovich will, at least,
>ride it out, even if he has to make do with one less football team and a
>smaller number of yachts.
>
>>Some news articles try to make a connection between the sanctions Abramovich
>>received and the fact that he hasn't plainly condemned the war in Ukraine,
>>but so what? A person is entitled to keep dubious company and hold, reserve
>>or express their views as they see fit without sanction.
>>
>>Imagine if our bank accounts and assets were confiscated because of an
>>unsavoury friend we had. And no one in the news or leadership is
>>condemning this.
>
>Vladimir Putin is not merely an unsavoury friend. He is the head of a
>country which is engaging in war crimes in a foreign, sovereign state.
>
>>Anyone else think this is wrong?
>
>I'm sure there are plenty of apologists for the war who do, yes.
I remember this argument from the Iraq war. Everyone who criticised the
US-UK attack was accused of supporting Saddam Hussein.
--
Algernon