UK to sue Abramovich over Chelsea sale funds for Ukraine

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    Three years have passed since Russian billionaire Roman Abramovich was forced to sell Chelsea Football Club, and the British government has announced its readiness to take legal action to ensure the sale proceeds benefit Ukraine’s war victims. Following Russia’s invasion of Ukraine in 2022, Abramovich was sanctioned, leading to the sale of Chelsea to a consortium led by American investors Todd Boehly and Clearlake Capital for a total of 2.5 billion pounds ($3.2 billion) in May that year.

    Before the transaction was finalized, Abramovich declared that the net proceeds would be used to establish a charitable foundation to aid all victims of the war in Ukraine. Despite these intentions, the funds have since remained frozen in a bank account. The British government has confirmed that the money is yet to be distributed to those in need.

    In a joint statement, the Treasury chief, Rachel Reeves, and Foreign Secretary David Lammy expressed the government’s commitment to ensuring the funds reach humanitarian causes in Ukraine. They conveyed their frustration over the lack of agreement with Abramovich and affirmed their preparedness to initiate court proceedings if necessary: “The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine… We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far,” they stated. “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.”

    The sanctions against Abramovich were part of measures aimed at individuals closely linked to Russian President Vladimir Putin, whom the British government described as “oligarchs and kleptocrats” complicit in the aggression. Even though the funds from the sale legally remain Abramovich’s, they are immobilized and cannot be used or transferred without a licence from the Office of Financial Sanctions Implementation.

    The government remains steadfast in its insistence that the money must be directed towards humanitarian aid in Ukraine, seeking to support those affected by the ongoing conflict.