UK ministers are preparing to take Roman Abramovich to court in an effort to unlock more than £2bn from the sale of Chelsea FC to be used for humanitarian aid in Ukraine. Frustrated by the lack of agreement with the Russian oligarch over how the money should be allocated, officials are now turning to the legal system to resolve the issue, with a public court battle on the horizon.
The dispute centers on the use of the £2.7bn proceeds from the 2022 sale of Chelsea, which was pressured by the British government following Russia’s invasion of Ukraine. While the UK government aims to direct the funds exclusively towards Ukraine, Abramovich’s representatives have pushed back, with no resolution reached on whether the money can be spent outside the country as well. Ministers are particularly keen to keep the funds flowing to Ukraine, especially after the decision by former US President Donald Trump to freeze military aid and cut off intelligence sharing with the country.
A source close to the situation revealed that ministers are growing increasingly frustrated, saying, “The sense within government is that we are heading towards the courts over this. There is a fundamental disagreement with Abramovich himself over where the money can be spent, and it seems the law is going to be the only way to resolve that.”
The £2.7bn is currently frozen in a UK bank account held by Abramovich’s company Fordstam, as the government works to establish an independent foundation to manage and distribute the money. The foundation will be led by Mike Penrose, former head of Unicef UK, but it has not yet been set up. The Foreign Office has assured that discussions with Abramovich’s representatives are ongoing, but officials remain determined to ensure the funds reach humanitarian causes in Ukraine.
Since the sale, the government and Abramovich have been at odds over the allocation of the funds. Under the terms of the sale, Abramovich was granted a special license due to his sanctions status, allowing him to sell Chelsea provided the proceeds were directed towards supporting the victims of the Ukraine war. However, the continued deadlock has left the money frozen, and the government is now preparing to take legal action to resolve the matter.
Abramovich’s representatives have yet to respond to the request for comment, but the UK government’s frustration is growing, with officials committed to securing the funds for Ukraine’s aid. The coming court battle, if it materializes, is expected to be high-profile, given Abramovich’s position as one of the world’s richest people and the importance of the funds in supporting Ukraine’s ongoing humanitarian needs.