UK threatens to sue Abramovich over Chelsea sale proceeds

The UK government has threatened to sue former Chelsea Football Club owner Roman Abramovich to ensure that the £2.5 billion proceeds from the club’s sale are used for humanitarian aid in Ukraine.

The funds have been frozen in a UK bank account since the sale, with Abramovich sanctioned after Russia’s full-scale invasion of Ukraine in February 2022.

Background

Abramovich, a Russian billionaire with alleged ties to Russian President Vladimir Putin, was granted a special license to sell Chelsea following the invasion, provided he could prove he would not benefit from the sale.

However, the UK government and Abramovich’s lawyers have been locked in a disagreement over the use of the sale proceeds.

While the UK government wants the money to go towards Ukrainian humanitarian aid, Abramovich has stated that he wants it to benefit “all victims of the war in Ukraine”.

In a joint statement, Chancellor Rachel Reeves and Foreign Secretary David Lammy said that the government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine.

They expressed frustration that an agreement had not been reached with Abramovich and warned that they are prepared to pursue the matter through the courts if necessary.

Abramovich’s Position

Abramovich’s lawyers have argued that the funds should be used for a broader purpose, rather than solely for Ukrainian humanitarian aid.

However, the UK government has made it clear that it will not back down, with Reeves and Lammy stating that they want to ensure that people suffering in Ukraine can benefit from the proceeds as soon as possible.

The UK government has warned that it will take court action if an agreement cannot be reached with Abramovich.

A House of Lords committee had previously criticized the delay in releasing the funds, saying that it was “incomprehensible” that Abramovich’s promise to use the funds to support Ukraine remained unfulfilled.