Roman Abramovich challenges UK government for control of £2.5bn funds from Chelsea sale despite Ukraine vow as deadline approaches

The funds have been locked in a UK bank account since the club was sold to a consortium led by US businessman Todd Boehly, The Guardian reports. While the UK government intends for the money to be strictly ringfenced for victims in Ukraine, Abramovich’s legal team argues that the cash remains "wholly owned" by Fordstam Ltd, the vehicle used by the billionaire to fund the Blues during his trophy-laden tenure at Stamford Bridge.

The core of the dispute rests on the definition of "victims." When Abramovich first announced his intention to sell Chelsea in March 2022, he stated the proceeds would be used “for the benefit of all victims of the war in Ukraine.” This wording has sparked concerns among UK officials that the billionaire intends to divert a portion of the relief funds to Russian recipients, a move the government is determined to block.

Lawyers at Kobre & Kim, representing Abramovich, have hit back at the restrictions, stating: “The UK government appears to be treating this proposed donation as a form of punitive measure against Mr Abramovich. The proposal to donate these proceeds was initiated by Mr Abramovich prior to the imposition of sanctions, and he remains fully committed to ensuring that the funds are used for charitable purposes.”

With a March 17 deadline fast approaching, British ministers are losing patience over the three-year stalemate. UK Foreign Secretary Yvette Cooper has taken a firm stance on the matter, making it clear that the state is prepared to take drastic measures if the former Chelsea owner does not comply with their directives regarding the frozen billions.

Cooper recently stated: “This money was promised to Ukraine over three years ago. It is time Roman Abramovich does the right thing but if he won’t we will act.” This sentiment was echoed by Prime Minister Keir Starmer, who warned in December that “the clock is ticking” for a resolution to be reached before the government pursues formal confiscation proceedings.

Abramovich has shown no sign of backing down, with his representatives accusing the government of making “politically charged and highly publicised statements” to pressure the oligarch. If the UK government attempts to seize the funds through formal confiscation, the legal team has confirmed that the move will be vigorously contested in court, potentially delaying the humanitarian aid even further.

In a final defiant letter sent ahead of the deadline, the lawyers reiterated: “The UK government appears to be treating this proposed donation as a form of punitive measure against Mr Abramovich. The proposal to donate these proceeds was initiated by Mr Abramovich prior to the imposition of sanctions, and he remains fully committed to ensuring that the funds are used for charitable purposes.”