UK Issues Legal Threat Against Russian Billionaire Over Chelsea Sale Funds
The UK government has threatened legal action against Russian billionaire Roman Abramovich if he does not agree to transfer £2.5 billion ($3.4 billion) from the 2022 sale of to support humanitarian efforts in Ukraine.
The funds, currently frozen in a UK bank account, remain under Abramovich’s legal ownership due to sanctions imposed after Russia’s invasion of Ukraine in February 2022.
In a joint statement, Chancellor Rachel Reeves and Foreign Secretary David Lammy expressed frustration over the deadlock, stating, “The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine.”
They added, “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.”
Dispute Over Fund Allocation
Abramovich sold Chelsea to a US-led consortium in May 2022, following sanctions over alleged Kremlin ties, which he denied.
He intended the sale proceeds to aid victims of the Ukraine conflict on both sides, but the UK insists the funds support only Ukrainians.
This has led to a “fundamental disagreement,” with the government engaging Abramovich’s representatives and international partners to resolve the issue.
Sanctions and Frozen Assets
The funds require a Foreign Office license for release, contingent on Abramovich’s approval. Sanctions prevent him from accessing the money, though he retains legal ownership.
The broader context involves Western nations freezing over $300 billion in Russian reserves, with proposals to use these for Ukraine’s reconstruction. Moscow has called such actions “outright theft,” warning of retaliation.
Ongoing Stalemate
The UK’s push for a resolution, including potential court action, underscores the tension.
Abramovich’s representatives have not commented publicly, leaving the funds’ fate uncertain as negotiations continue.