The UK government is intensifying efforts to access the £2.5 billion proceeds from the 2022 sale of Chelsea Football Club, threatening legal action against Roman Abramovich if the funds are not released promptly. Chancellor Rachel Reeves and Foreign Secretary David Lammy have voiced deep frustration over the prolonged impasse surrounding the money, which remains frozen in a UK bank account. The government insists the funds should be used exclusively for humanitarian aid to support victims of the war in Ukraine, but disagreements with Abramovich have caused a deadlock.
Abramovich, a sanctioned Russian oligarch, was forced to sell Chelsea FC following the imposition of sanctions by the UK government due to his alleged close ties to Russian President Vladimir Putin. As part of the sale agreement, the proceeds were to be held in trust and directed towards aiding those affected by the conflict in Ukraine. However, more than three years later, the money remains inaccessible amid legal and administrative hurdles. The Office for Financial Sanctions Implementation requires a formal license to release the funds, and a designated foundation to manage and distribute the aid has yet to be established.
Central to the dispute is the question of how the money should be allocated. The UK government maintains that the funds must be used solely for humanitarian relief within Ukraine, in line with the original terms of the sale. Abramovich, however, has argued for a broader distribution of the money, suggesting it should also benefit victims of the war outside Ukraine’s borders. This disagreement has resulted in a stalemate, with neither side willing to compromise on the conditions tied to the proceeds.
Chancellor Rachel Reeves and Foreign Secretary David Lammy have stressed that while dialogue continues, the government is prepared to take legal action to enforce the intended use of the funds. They emphasized the urgency of releasing the money to support those suffering due to the conflict and highlighted their commitment to ensuring the proceeds are not left in limbo. Critics have argued that the government should have secured more binding guarantees at the time of the Chelsea sale to prevent such a deadlock.
This situation also raises broader questions about the handling of frozen Russian assets seized amid the ongoing war. While the UK pushes for the repurposing of such funds to aid Ukraine, some European allies have expressed reservations due to legal complexities and concerns about financial stability. The outcome of the UK’s legal battle over Abramovich’s Chelsea sale proceeds could establish a precedent for how frozen assets linked to sanctioned individuals are managed in the future.
As legal preparations move forward, the spotlight will be on the courts to determine if and when the substantial sum will be unlocked to provide much-needed humanitarian assistance to those impacted by the war in Ukraine. The government’s determination to resolve the stalemate underscores the political and moral weight attached to these frozen assets in the broader context of the conflict.
