The UK government said on Wednesday (17) that it is giving Russian oligarch Roman Abramovich one last chance to donate £2.5 billion from the sale of Chelsea to Ukraine if he does not want to face possible legal action.
The United Kingdom sanctioned Abramovich in a crackdown on Russian oligarchs following Moscow’s 2022 invasion of Ukraine, which led to the hasty sale of the Premier League football club and the freezing of proceeds from the transaction.
The UK wants the funds to be spent exclusively on humanitarian causes in Ukraine, in line with wider European pressure for Moscow to bear the costs of the death and destruction caused by the invasion.
Reuters was unable to immediately reach representatives for Abramovich for comment on the government’s statement. He has previously requested greater flexibility and said he wants the money to go to all victims. Abramovich has 90 days to comply with the terms of the new license granted by the government.
If the Russian businessman does not release the funds quickly, the government stated in a statement that it is fully prepared to take him to justice, if necessary, to enforce the agreement reached with him in 2022.
“It is unacceptable that more than £2.5 billion owed to the Ukrainian people remains frozen in a UK bank account,” Finance Minister Rachel Reeves said in the statement.
License required
Prime Minister Keir Starmer said the UK will issue a license to release the funds. This would allow the money to be transferred to a new charitable foundation.
“We will consider any proposal from Mr. Abramovich to utilize this clear legal route to establish the foundation and transfer the funds under the terms of the license,” Reeves said in a separate statement issued to parliament.
European Union leaders are due to consider on Thursday (18) proposals that aim to use resources from tied-up Russian sovereign assets to support Ukraine’s huge budget and defense needs — something Moscow vehemently opposes.
Under Abramovich’s management, Chelsea enjoyed the most successful period in their history before being sold to a consortium led by American investor Todd Boehly and private equity firm Clearlake Capital in May 2022.
The proceeds from the sale are frozen in a British bank account. They cannot be moved or used without a license from OFSI (Office of Financial Sanctions Implementation), the Ministry of Finance agency responsible for enforcing sanctions.
