Government pressures Abramovich over Chelsea sale funds

The UK government has threatened to sue former Chelsea FC owner Roman Abramovich to ensure the £2.5bn proceeds from the club’s 2022 sale are directed to Ukraine.

Chancellor Rachel Reeves has taken a personal lead in attempting to force the fund’s release for Ukraine aid, which have been frozen in a UK bank account since the sale. This followed Mr Abramovich’s sanctioning after Russia’s full-scale invasion of Ukraine in February 2022.

The UK government has stated its desire for the money to be used for Ukrainian humanitarian aid. However, Mr Abramovich has indicated he wants the funds to benefit all victims of the war in Ukraine, which could include those in Russia.

This disagreement has caused a delay in releasing the funds. The Labour Government has held the same line as the previous Tory administration in insisting the huge sum is spent only on Ukraine.

Mr Abramovich, a Russian billionaire, was granted a special licence to sell Chelsea on the condition that he would not benefit from the sale. Despite the money being frozen under UK sanctions, it still legally belongs to him. The UK government has pushed back against his proposal, arguing the funds should be spent solely on humanitarian efforts within Ukraine.

The fund will have generated a significant amount of interest while in the account, potentially taking the total value beyond £2.5bn.

A House of Lords committee had previously described the delay as incomprehensible, noting that Mr Abramovich’s promise remained unfulfilled and the assets frozen.

In a joint statement, Rachel Reeves and Foreign Secretary David Lammy, commented, “We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far.

“The Government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion. While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.”