British authorities will check the buyer of Abramovich’s company for ties with Russia

British authorities are investigating the sale of Truphone, a telecommunications group owned by Russian businessman Roman Abramovich, over possible ties to Russia. The Telegraph with reference to informed sources.

Formerly Financial Times reportedthat Truphone, owned by Abramovich and his partners, will be sold for £1 to two European entrepreneurs, German businessman Hakan Koch and his business partner Pirros Koussios.

According to the Telegraph, the kingdom’s business ministry’s investment security unit froze the deal in July for a 30-day investigation under national security and investment law. However, the staff of the department decided that it was necessary to carry out a more thorough check lasting 45 days.

“The government is looking into allegations that Koch may also have ties to Russia,” the paper said.

Roman Abramovich owns 23% of Truphone shares, most of the remaining shares are owned by his partners in the metallurgical holding Evraz Alexander Abramov and Alexander Frolov. The company will be bought by German businessman Hakan Koch and his business partner Pirros Koussios, the newspaper writes. Frolov’s son previously ran Target Global, a company that financed Auto1, which Koch co-founded, the sources said. At the same time, Koch claims that he has nothing to do with the owners of Truphone.

Under the terms of the deal, the current owners will invest more than £10m in Truphone and are also required to pay off the network’s debts, including a $660,000 fine for misrepresenting the company’s ownership structure. Abramovich, Frolov and Abramov, according to the publication, are entitled to receive up to a third of the funds from the amount invested in the company if its value grows.

The Telegraph alleges that Koch’s previous business, Auto1, received funding from Target Global, a Moscow-based venture capital fund run by businessman Alexander Frolov.

On March 10, the UK imposed sanctions on Abramovich, froze his assets and banned the businessman from entering the country. In mid-March, a similar decision was made by the European Union. Britain explained the restrictions imposed on the businessman by his connection with the Kremlin and Russian President Vladimir Putin.

Due to the imposition of sanctions, Abramovich decided to sell his Chelsea football club, and promised to send the proceeds to help Ukraine. On May 26, a deal to sell the club to a group of businessmen led by American Todd Boely was officially agreed upon and closed. The deal amounted to 4.25 billion pounds, or about $5.2 billion. At the end of May, the businessman filed a lawsuit against the Council of Europe in the European Court of General Jurisdiction due to sanctions.