The British government is increasing pressure on Russian oligarch Roman Abramovich to fulfill a pledge to use funds from the sale of Chelsea Football Club for humanitarian purposes in Ukraine. After three years of negotiations, patience is waning in Downing Street, particularly as European nations consider utilizing frozen Russian assets to aid Ukraine’s financial stability.
Abramovich and the Frozen Funds
Prime Minister Keir Starmer has authorized the transfer of 2.85 billion euros – the proceeds from the sale of Chelsea F.C. – to Ukraine. Abramovich, described as an ally of Vladimir Putin, initially agreed to direct the funds to humanitarian efforts. However, he has stalled the process by insisting the money benefit “all victims,” including Russian soldiers and civilians, and by disputing the total amount held by his foundation.
“The clock is now ticking for Roman Abramovich to follow through on the commitment he made when Chelsea F.C. was sold, and transfer those £2.5 billion to a humanitarian cause in Ukraine,” Starmer stated Wednesday before Parliament’s holiday recess. He added that the government is prepared to pursue the matter in court to ensure the funds reach those impacted by the war.
Sanctions and the Path to Sale
Severe economic sanctions imposed on Abramovich by the government of Boris Johnson, due to his ties to the Putin regime and support for actions against Ukraine’s territorial integrity, had placed the football club in a precarious financial position. A consortium led by Todd Boehly and Clearlake Capital ultimately purchased the club, with the sale proceeds held in a UK bank account.
The government of Starmer is giving Abramovich a final opportunity to propose a destination for the funds that will benefit victims of the war in Ukraine. Sources told the Financial Times that Abramovich has been granted 90 days to respond. Economy Minister Rachel Reeves echoed Starmer’s sentiment, stating it is “unacceptable” that over £2.5 billion owed to the Ukrainian people remains frozen. However, she acknowledged that the funds legally remain Abramovich’s property, despite being frozen and under government control.
Broader European Discussions
Pressure on Abramovich coincides with a European summit in Brussels where leaders are debating the release of over 92 billion euros in frozen Russian funds. The proposal is to convert these funds into “reconstruction loans” for Ukraine, which is facing economic devastation due to the ongoing war. Downing Street has been negotiating with Abramovich, his lawyers, and his company, Fordstam Ltd, for three years. However, recent filings with the UK’s Companies House suggest that Fordstam Ltd. holds significantly less than the £2.5 billion the British government is seeking.
Frequently Asked Questions
What is the status of the funds from the Chelsea F.C. sale?
2.85 billion euros from the sale of Chelsea F.C. are currently held in a UK bank account, awaiting transfer to Ukraine for humanitarian purposes.
Why is Roman Abramovich delaying the transfer of funds?
Abramovich has insisted the funds be used to benefit “all victims” of the conflict, including Russian soldiers and civilians, and has disputed the total amount available.
What is the European Union considering regarding frozen Russian assets?
The EU is debating releasing over 92 billion euros in frozen Russian funds to provide “reconstruction loans” to Ukraine.
As negotiations continue, and with a 90-day deadline now in place, what will ultimately become of these frozen assets, and how effectively can international pressure be leveraged to support Ukraine’s recovery?
