MOSCOW, July 2 (RIA Novosti) – Billionaire Roman Abramovich has resigned from his only government post – chairmanship of the Chukotka regional assembly – to avoid falling foul of a new law banning officials from holding assets abroad, in a development that some analysts said threatened to cut off funding to a remote area of Russia.
“During today's session of the Chukotka Autonomous Region Duma, deputies accepted the voluntary resignation of Roman Arkadievich Abramovich from his position as a deputy and chairman of the Duma,” said a statement on the local government’s website Tuesday. “Roman Abramovich’s decision to leave is linked with his intentions to fully observe the law.”
Before becoming Duma chairman, Abramovich was governor of the Chukotka Region, located in the far northeast corner of Russia, for almost eight years until 2008, and has been responsible for a substantial increase of financial inflows to the area through his investments, charitable projects and the tax contributions of some of his companies.
Experts said that the decision of such a wealthy and powerful backer to step down could have negative consequences for Chukotka, which already has the second lowest life expectancy – 62 years – of any Russian region, according to a 2013 RIA Novosti survey.
“For Chukotka it is definitely a big loss because the blossoming of the region began with him [Abramovich],” said Dmitry Abzalov, a political analyst at the Center for Russian Political Competition.
But Abramovich’s spokesman John Mann denied that the billionaire was planning to cut back on his support for Chukotka. “Abramovich will continue to invest in Chukotka and try and help develop the economy there,” Mann told RIA Novosti. “The only difference is that he won’t be voting on new local laws.”
Mann also denied that there were any political conflicts behind the resignation, following a Tuesday report in Vedomosti newspaper that Abramovich was dissatisfied with some unspecified political developments at a national level. “There is one reason and one reason only,” said Mann, who added that he did not know if Abramovich had discussed his decision with President Vladimir Putin.
Foreign assets and foreign bank accounts are an integral part of the business empire controlled by Abramovich, Russia’s 13th richest man, who is worth $10 billion according to Forbes magazine. The billionaire controls his stake in Russian miner Evraz through an offshore company, and bought control of London football club Chelsea a decade ago.
In an attempt to reduce corruption and strengthen the state's grip by "nationalizing the elite," Putin signed off on legislation banning officials from owning foreign assets, including bank accounts and financial instruments, in early May.
