The Government is threatening to take Roman Abramovich to court to seize proceeds of his Chelsea sale after growing “deeply frustrated” with failure to reach an agreement on how it can be spent.
Former Chelsea owner Abramovich was forced to sell the club after being placed under sanctions due to links to Vladimir Putin’s regime following Russia’s invasion of Ukraine nearly three years ago.
Funds of £2.5bn remain frozen in a UK bank account.
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The Government is adamant that all proceeds will be donated for humanitarian purposes in Ukraine, but Abramovich wants the money to go to all victims of the war, which could include Russians.
Chancellor Rachel Reeves said on Monday: “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.
“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.”
Abramovich was under sanctions when he made the sale, but was issued a special licence by the Office of Financial Sanctions Implementation (OFSI) to sell the club.
The funds cannot leave the bank account without a licence from the OFSI.
Sources describe a complicated process and government officials are working with international partners to find a resolution.
Campaigners told The i Paper in March that they were baffled why the funds had not been released.
“It has been committed for humanitarian purposes in Ukraine and yet three years later we’re still waiting for its deployment,” said Lyra Nightingale, a legal expert with Redress, a charity campaigning for reparations for victims of war and holding those responsible to account.
“And there is no clarity as to why it is stuck. There is a very real lack of transparency.”
Abramovich completely transformed Chelsea after paying £140m to buy the club in 2003.
He dramatically altered the landscape of Premier League and world football with his aggressive expenditure on transfers and wages.
Under his ownership, the Blues won more than 20 major trophies, including five Premier League trophies, the Champions League twice and five FA Cups.
In March 2022, Abramovich had his assets frozen and was banned from flying to Britain. It came two weeks after Putin launched his war.
Then-foreign secretary Liz Truss said: “With their close links to Putin, they are complicit in his aggression. The blood of the Ukrainian people is on their hands. They should hang their heads in shame.”
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Abramovich denied strong ties to Putin.
Chelsea were granted a special licence to continue operating but the club’s future was plunged into doubt. They were unable to sell tickets, merchandise, or buy or sell players.
Club officials embarked on a rapid auction, run by Raine Bank, which was eventually won by Todd Boehly and Clearlake Capital.
Since then, almost every member of staff who worked under Abramovich has been replaced.
Abramovich was only granted a special licence to sell the club on the grounds that he would not benefit from the sale in any way.
MPs across parties have been dismayed that almost three years after the sale not a penny has been released and have called for stronger action to be taken.
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