The UK Government is poised to initiate legal proceedings against Roman Abramovich in a bid to unlock £2.5 billion from the 2022 sale of Chelsea Football Club, earmarked for humanitarian relief efforts in war-torn Ukraine.
Chancellor Rachel Reeves and Foreign Secretary David Lammy have voiced growing exasperation at the prolonged deadlock in securing an agreement with Mr Abramovich concerning the frozen funds.
The Russian billionaire, once the owner of Chelsea FC, was sanctioned by the UK following Vladimir Putin’s full-scale invasion of Ukraine.
Although Chelsea was sold in May 2022, with the sale proceeds intended to aid Ukrainian victims of the conflict, the £2.5bn remains frozen in a UK bank account.
The funds cannot be distributed without a special licence issued by the Office of Financial Sanctions Implementation (OFSI).
In a joint statement, Ms Reeves and Mr Lammy said: “The Government remains committed to ensuring the proceeds from the Chelsea sale support those affected by Russia’s illegal invasion of Ukraine. It is deeply frustrating that agreement has not yet been reached with Mr Abramovich.”
They added: “While we remain open to negotiations, we are prepared to pursue legal avenues to ensure the funds are directed towards those suffering in Ukraine without further delay.”
In a related development, Foreign Secretary David Lammy recently called for a shift in Western policy from merely freezing Russian assets to seizing them outright, redirecting those resources to assist Ukraine’s recovery and reconstruction. Earlier this year, a Foreign Office minister also floated the idea of using Mr Abramovich’s UK-based properties to house displaced Ukrainian refugees.
Labour’s Baroness Chapman of Darlington described the proposal as “an interesting idea” and pledged to have it reviewed by civil servants.
The UK’s push to access the Abramovich funds forms part of a broader international effort to hold sanctioned Russian oligarchs financially accountable and bolster support for Ukraine amidst ongoing aggression from the Kremlin.
