UK government moves to unlock Russian billionaire’s funds for Ukraine

The UK government has announced it is considering legal action against Russian billionaire Roman Abramovich in a bid to unlock £2.34 billion ($3.2 billion) from the 2022 sale of Chelsea Football Club, with the intention of directing the funds toward humanitarian aid for Ukraine.

Abramovich, whose estimated net worth exceeds $8 billion according to the Bloomberg Billionaires Index, sold the Premier League club to a consortium led by American investor Todd Boehly in May 2022, Caliber.Az reports per foreign media.

The sale occurred after Abramovich was sanctioned by both the UK and the European Union over his alleged connections to Russian President Vladimir Putin, following Russia’s full-scale invasion of Ukraine.

Since the sale, the proceeds have been frozen in a UK bank account, where they remain inaccessible without a license from the Office of Financial Sanctions Implementation (OFSI), a division of HM Treasury. Although the UK government has consistently stated that the funds should be used for humanitarian purposes in Ukraine, an agreement with Abramovich has yet to be reached.

In a joint statement, Chancellor of the Exchequer Rachel Reeves and Foreign Secretary David Lammy expressed frustration over the impasse:

“The government is determined to see the proceeds from the sale of Chelsea football club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion. We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far.”

They added: “While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.”

In 2022, the UK released £200,000 to cover the legal and administrative costs of establishing a foundation to manage the funds. The foundation, intended to support medical, educational, and shelter projects for Ukrainians, was Abramovich’s own proposal, according to its acting CEO Mike Penrose.

Despite cooperation with the European Commission and Portuguese authorities, legal complexities around using sanctioned assets have slowed the process. Both the UK and EU are still exploring legal avenues to repurpose frozen Russian assets for Ukraine’s reconstruction.

By Vafa Guliyeva