The UK will formally issue instructions to transfer £2.5bn from Roman Abramovich’s sale of Chelsea FC to humanitarian causes in Ukraine, telling the billionaire to commit the funds or face court action.
Keir Starmer told the House of Commons the funds from the oligarch, who is subject to UK sanctions, would be converted in to a new foundation for Ukraine and that the issuing of a licence for the transfer was the last chance Abramovich would have to comply before legal action was taken.
“The clock is ticking on Roman Abramovich to honour the commitment he made when Chelsea FC was sold and transfer the £2.5bn to a humanitarian cause for Ukraine,” Starmer said. “This government is prepared to enforce it through the courts so that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
The Russian billionaire sold Chelsea in 2022 under pressure from the British government after the Russian invasion of Ukraine.
Abramovich was granted a licence from the UK government to sell Chelsea as long as the money was spent supporting the victims of the Ukraine war. The proceeds were placed in a UK bank account controlled by Abramovich’s company Fordstam.
Since then, the money has been frozen amid deadlock in negotiations with Abramovich on whether it should be spent exclusively in Ukraine, or can go outside the country as well.
The government has promised to establish a foundation to disburse the money, headed by Mike Penrose, the former head of Unicef UK.
The chancellor, Rachel Reeves, said it was “unacceptable that more than £2.5bn owed to the Ukrainian people can be allowed to remain frozen in a UK bank account. It’s time for Roman Abramovich to pay up. If he doesn’t act, then we are prepared to do what is necessary to make sure that money get to the Ukrainian people.”
Ministers emphasised they have tried for many years to agree terms with Abramovich and get his cooperation in the funds transfer. Starmer said the government was prepared to take Abramovich to court in order to access the money.
The Guardian reported in March that ministers believed ultimately legal action was likely to be needed. The government has said it would consider “any proposal” from Abramovich to voluntarily donate the funds to Ukraine.
Under the terms of the licence, proceeds must go to humanitarian causes in Ukraine but future gains can be spent more broadly on victims of conflict worldwide. The funds cannot benefit Abramovich or other individuals under sanctions.
The move comes as the Ukrainian president, Volodymyr Zelenskyy, said proposals negotiated with US officials on a peace deal to end Russia’s war in Ukraine could soon be completed.
US officials said on Monday they had resolved “90%” of the problematic issues between Russia and Ukraine after two days of talks in Berlin, though Russian officials have not been present.
Talks are continuing this week between European leaders on a separate plan to use frozen Russian assets to finance Ukraine in the coming years, with a leaders’ meeting scheduled to begin on Thursday. Most of the assets, €185bn (£162bn), are held at the Euroclear central securities depository in Brussels.
Moscow has said that using the assets would be theft and has threatened to seize European private investors’ holdings in Russia. Plans under discussion mean the EU would provide an initial €90bn loan for Ukraine using the cash at Euroclear, but Russia’s claim on the funds would remain untouched. Ukraine would repay the money only if and when Russia agreed to pay reparations.
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