On Monday, Everton-linked Alisher Usmanov was one of a number of oligarchs sanctioned by the European Union for alleged ties to Russian president Vladimir Putin.
President Putin's decision to invade neighbouring Ukraine with military force has created an international crisis and seen wealthy individuals and Russian companies face sanctions from the US, EU and others in a bid to put pressure on Putin to put a stop to the conflict.
Usmanov, who has no shareholding at Everton but whose firms such as USM and MegaFon have aided revenues considerably through sponsorship deals, was named in the EU sanctions report as someone who had "actively supported materially or financially Russian decision-makers responsible for the annexation of Crimea and the destabilisation of Ukraine" and "actively supported the Russian government’s policies of destabilisation of Ukraine."
The sanctions with which Usmanov, whose wealth exceeds £13bn and who is one of the world's richest people, have been hit include an asset freeze and a prohibition from making funds available to the listed individuals and entities - as well as a travel ban to prevent them from entering or transiting through EU territory.
Uzbek-born Usmanov, via a statement on the International Fencing Federation website, an organisation where he serves as president, made his position clear on Tuesday.
"On 28 February 2022 I became the target of restrictive measures imposed by the European Union," the statement read.
"I believe that such decision is unfair, and the reasons employed to justify the sanctions are a set of false and defamatory allegations damaging my honor (sic), dignity and business reputation.
"I will use all legal means to protect my honor (sic) and reputation."
Usmanov also indicated he has suspended his duties as the President of the International Fencing Federation "until justice is restored".
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Usmanov's indirect involvement with Everton stems from his long-time friendship with business associate and Blues owner, Farhad Moshiri.
Both were shareholders in Arsenal prior to Moshiri's takeover of Everton in 2016, and Moshiri sits as chairman and minority shareholder of USM Holdings, the company that sponsors Everton's Finch Farm training ground and that paid £30m for the option on the naming rights to the yet-to-be-built new stadium for the Toffees at Bramley Moore Dock. MegaFon, another Usmanov firm, sponsors the Everton Women's team.
Usmanov, who holds a 49 per cent stake in USM Holdings, is the founder of the firm.
But Usmanov has always maintained an arms length relationship with Everton, not choosing to become a shareholder and instead aiding the club's ambitions through sponsorship deals. Commercial revenue for Everton stood at £21m in 2016, by last year's accounts it had risen to £76m - a rise of 255 per cent and the biggest percentage leap of any Premier League side during the same period.
At a time when Chelsea owner Roman Abramovich, himself with alleged links to Putin mentioned in Parliament, has pre-emptively attempted to hand over control of the London side to the Chelsea Foundation trustees, and where clubs including Manchester United and Schalke 04 have terminated sponsorship agreements with Russian firms, as have UEFA, having such a prominent sponsor that is domiciled in Russia and that has links to a sanctioned oligarch places Everton in a difficult position.
A new statement on Tuesday evening from Usmanov's firm Metalloinvest, which is owned 100 per cent by USM Holdings, stated that the nature of Usmanov's shareholding meant that USM businesses would not be hit by EU sanctions.
A Metalloinvest statement read: "On 28 February 2022, the European Union imposed restrictive measures against a number of Russian state and public figures and entrepreneurs, including Alisher Usmanov.
"We consider the sanctions against the founder of Metalloinvest ungrounded and unfair.
"The restrictive measures imposed by the EU against Alisher Usmanov are of a personal character and will not affect Metalloinvest.
"Mr. Usmanov owns less than 50 per cent of USM Group’s parent company and does not control the Group's enterprises.
"Thus, the inclusion of Alisher Usmanov in the EU sanctions lists does not extend the effect of the relevant sanctions to USM’s companies. Metalloinvest continues to carry out business as usual, fulfilling all obligations to its employees and partners."
EU sanctions hold a '50 per cent rule', where a company is sanctioned by extension if each of the ownership links in an unbroken chain between it and an explicitly sanctioned person or entity is 50 per cent or more. Usmanov, despite being USM's founder, holds 49 per cent of the shares meaning that while he comes under sanctions, USM and other firms within their group, such as Metalloinvest do not.
USM were detailed in the 2018/19 Everton accounts as a related party, but they were omitted in the 2019/20 accounts.
An explanation for that, and of the current shareholding of USM , lies in the April 2018 decision to create a new holding company for USM and affiliated businesses, where Usmanov would own 49 per cent; Vladimir Skocha, father of one of Usmanov's long-time friends, would own 30 per cent, with three per cent owned by USM head Ivan Streshinsky.
Overseas holding companies controlled the other shares, including Cypriot-based Somelior Holdings, wholly owned by Moshiri, that held an eight per cent stake in the new USM holding company, according to independent Russian news agency Interfax.
Moshiri remains listed as chairman of the board of directors on the USM Holdings website.
Last week Everton were forced to clarify their position over USM after the Russian invasion of Ukraine had led to the US Treasury imposing economic sanctions on a number of businesses and individuals, among them a firm called USM LLC.
Everton sources told the ECHO on Friday that the 'USM LLC' firm included on the Treasury list was not the firm which Everton had their sponsorship deals through, that firm being USM Holdings. Everton sources have indicated that Usmanov 'categorically' has no links to that company.
The USM LLC (also known as YuESEM LLC), linked as a subsidiary company to Sovcombank, which is under sanctions, is a company that is named in the Treasury list that, according to company information based upon its registration information, has one employee, its founder and head Andrey Andreevich Shcherbina, with no other persons named in connection with the business. Formed in 2016, it provides 'other financial services' and is based in a suburb of the western city of Kostroma.
USM and Everton's relationship will likely be allowed to continue without the threat of sanction, but Everton face a quandary over their most lucrative sponsors.
Everton showed their solidarity with Ukraine impeccably ahead of the weekend clash with Manchester City, with Everton's Vitalii Mykolenko and City's Oleksandr Zinchenko, both Ukrainian internationals, emotionally embracing each other as both sets of teams and fans displayed Ukraine flags.
The issue for the club moving forward is that, in the wake of others cutting ties with Russian businesses to show solidarity with Ukraine, how will maintaining a relationship with a Russian firm majority owned by someone under EU sanctions for ties to Putin be viewed.
