Summary:
- £2.5 billion from Chelsea’s 2022 sale remains frozen due to a dispute between the UK government and Roman Abramovich.
- The UK wants funds strictly for Ukrainian humanitarian aid; Abramovich insists they go to “all victims of the war in Ukraine”.
- The government is prepared to take the issue to court if no agreement is reached.
The UK government is threatening legal action against Roman Abramovich to break a deadlock over the £2.5 billion raised from the sale of Chelsea Football Club. The money has remained frozen since 2022.
The Frustrating Standstill
The former Chelsea owner sold the club under UK sanctions shortly after Russia launched its full-scale invasion of Ukraine.
Abramovich was allowed to complete the deal only under the condition that he wouldn’t profit from the proceeds.
However, nearly two years later, the funds are still locked in a UK bank account, with no agreement on how they should be used.
The UK government insists the money should go exclusively to humanitarian efforts in Ukraine. Abramovich, however, has argued that it should benefit “all victims of the war in Ukraine”, a broader definition that includes Russians impacted by the conflict.
That difference has led to a prolonged standstill.
UK Government: “We Are Deeply Frustrated”
In a joint statement, Chancellor Rachel Reeves and Foreign Secretary David Lammy expressed growing frustration.
While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required.
Reeves and Lammy also stressed the government’s determination “to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible” while criticizing the lack of progress.
We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far.
The legal tangle comes from the fact that, while Abramovich is not able to access the funds due to sanctions imposed on him, he still technically owns the money.
His legal team has pushed back against the government’s efforts to control how the funds are used, leading to months of impasse.
A House of Lords report from last year sharply criticized the lack of movement on the matter, calling it “incomprehensible” that Abramovich’s promise to support victims of the war hadn’t yet materialized.
The report added,
This impasse reflects badly on both Mr Abramovich and the government, which ought to have pushed for a more binding commitment.
For now, the funds remain frozen, and unless a breakthrough is reached, it appears the matter will head to court.