UK threatens to sue Abramovich over $3.2B Chelsea sale funds for Ukraine
Roman Abramovich (photo: Getty Images)
The UK government will sue Putin-linked oligarch Roman Abramovich to recover $3.2 billion from the proceeds of the sale of the Chelsea football club for humanitarian purposes in Ukraine. This follows a joint statement from Chancellor of the Exchequer Rachel Reeves and Foreign Secretary David Lammy.
Abramovich, whose wealth exceeds $8 billion, sold the London club to a consortium led by American investor Todd Boehly in May 2022. This occurred after he was sanctioned by the UK and the EU over his ties to Vladimir Putin.
Since then, the proceeds from the sale have been frozen in a UK bank account and cannot be moved or used without a license from the Treasury.
The UK government has consistently stated that the funds should be used for humanitarian aid to Ukraine and has attempted to reach an agreement with Abramovich for that purpose.
However, the government has now reported that it has been unable to reach such an agreement and will pursue legal action.
"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," said Chancellor Rachel Reeves and Foreign Secretary David Lammy.
The ministers emphasized that negotiations remain an option. Still, they 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."
Proceeds from the sale of Chelsea
Abramovich purchased Chelsea Football Club in the summer of 2003. Following Russia's invasion of Ukraine, he was removed from his role as director due to sanctions and his connections with Vladimir Putin.
Abramovich announced the sale of Chelsea in early March 2022 and completed the deal in May for $5.4 billion.
He proposed creating a charitable foundation to which all net proceeds from the sale would be donated to help victims of the war in Ukraine.
In 2022, the UK government allocated around £200,000 to cover legal and administrative expenses for setting up the charity and hiring experts to develop a plan for using the funds. The proposal included creating a new foundation focused on humanitarian projects supporting healthcare, education, and shelter programs for Ukrainians.
The UK has worked with the European Commission and the government of Portugal (Abramovich holds Portuguese citizenship) to enforce sanctions and determine the use of the proceeds, but the process has proven complex.
