UK Warns Abramovich Over £2.5bn Pledge To Humanitarian Aid In Ukraine

The United Kingdom’s government has warned Roman Abramovich, the former owner of Chelsea FC, that “the clock is ticking” for him to transfer £2.5 billion from the sale of the football club to humanitarian efforts in Ukraine or face legal action.

On Wednesday, the government issued a new licence allowing the funds to be directed to a foundation dedicated to humanitarian aid in Ukraine, in a bid to break a stalemate that has lasted more than three years. The money has remained frozen in a UK bank account linked to the Russian billionaire.

“The clock is ticking on Roman Abramovich to honour the commitment he made when Chelsea FC was sold and transfer the £2.5 bn to a humanitarian cause for Ukraine,” Prime Minister Keir Starmer said in a statement from the UK Treasury. “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.”

Abramovich, who was forced to sell Chelsea following Russia’s invasion of Ukraine, announced in March 2022 that “all net proceeds from the sale will be donated for the benefit of all victims of the war in Ukraine.” At the time, the UK government, under former Prime Minister Boris Johnson, described him as a “pro-Kremlin oligarch” due to his ties to Russian President Vladimir Putin.

Chancellor of the Exchequer Rachel Reeves called the delay in transferring the funds “unacceptable,” while Foreign Secretary Yvette Cooper echoed the call for Abramovich to “do the right thing.”

Despite a similar legal threat in June, no progress has been made, with Abramovich’s representatives recently claiming that UK sanctions have “paralysed” the funds. A major sticking point has reportedly been disagreement over how and where the £2.5 billion should be distributed.

Reports indicated that Abramovich wanted the funds to benefit all victims of the conflict, including Russian soldiers, and to support other charitable causes outside Ukraine.

“The Government will consider any proposal from Abramovich to voluntarily donate the multi-billion pounds of funds to the most vulnerable in Ukraine,” the Treasury said in Wednesday’s statement. “Under the terms of the licence, proceeds must go to humanitarian causes in the country. Any future gains earned by the foundation can be spent more broadly on victims of conflict worldwide. In neither case can the funds benefit Abramovich or other sanctioned individuals.”

The statement added, “Should Abramovich fail to free the funds quickly, the UK Government is fully prepared to take him to court if necessary to enforce the agreement reached with him in 2022.”