The U.K. has threatened legal action against Russian businessman Roman Abramovich over 2.5 billion pounds ($3.4 billion) in frozen proceeds from the sale of Chelsea Football Club, which he intended to donate to victims of the war in Ukraine.
Abramovich was sanctioned by the U.K. in 2022 as part of a broader crackdown on Russian oligarchs following Moscow’s invasion of Ukraine, prompting a swift sale of the Premier League club and the freezing of the funds.
The U.K. insists the money should be used exclusively in Ukraine, aligning with a wider European push to make Russia pay for the devastation it caused. Abramovich, however, is pushing for greater flexibility, aiming to distribute the funds to all victims of the war, not just those in Ukraine.
In a rare joint statement, U.K. Chancellor of the Exchequer Rachel Reeves and Foreign Secretary David Lammy said Tuesday the government was prepared to intensify efforts to secure the funds.
“The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion. We are deeply frustrated that it has not been possible to reach an agreement on this with Mr. Abramovich so far,” they said.
They added that the door for negotiations would remain open but that they were “fully prepared to pursue this through the courts if required.”
A lawyer for Abramovich in the U.K. did not immediately respond to a request for comment.
Reuters reported in March that the U.K. was considering legal action over the issue.
Under Abramovich, Chelsea enjoyed the most successful period in its history before the club was sold in May 2022 to a consortium led by U.S. investor Todd Boehly and private equity firm Clearlake Capital.
Proceeds from the sale are frozen in a U.K. bank account and cannot be moved or used without a license from the Office of Financial Sanctions Implementation, the agency in the Treasury that enforces sanctions.
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