Prime Minister Keir Starmer has declared that the UK government will formally order the transfer of £2.5 billion from the sale of Chelsea Football Club to a humanitarian fund for Ukraine. The funds, frozen since the club's sale, belong to the sanctioned Russian oligarch Roman Abramovich.
Final Ultimatum Issued to Oligarch
In a statement to the House of Commons, Starmer stated that instructions will be issued to convert the proceeds into a new foundation dedicated to supporting Ukraine. The Prime Minister made it clear that granting a licence for this transfer represents the final opportunity for Abramovich to comply voluntarily. Should he refuse, the government is prepared to pursue legal action in court to access the money.
The saga stems from 2022, when Abramovich sold Chelsea under significant pressure from the British government following Russia's full-scale invasion of Ukraine. As a condition of the sale, the UK government granted a special licence stipulating that the proceeds must be used to support victims of the war. The money has since been held in a UK bank account controlled by Abramovich's company, Fordstam.
Years of Frozen Funds and Negotiation Deadlock
For over two years, the colossal sum has remained frozen due to a stalemate in negotiations between the government and Abramovich. The central dispute revolved around whether the funds should be spent exclusively within Ukraine or could also be directed to humanitarian causes outside the country's borders.
Ministers have emphasised that they have spent years attempting to reach an agreement and secure the oligarch's cooperation. The government's plan involves establishing a foundation to disburse the aid, which will be headed by Mike Penrose, the former chief executive of Unicef UK. Reports from as early as March indicated that officials believed court action would ultimately be necessary to unlock the funds.
Broader Context of Seizing Russian Assets
This decisive move coincides with wider international efforts to utilise frozen Russian assets to support Ukraine. European leaders are currently negotiating a separate plan to use profits from seized Russian state assets, €185 billion of which are held in Brussels, to finance Ukraine's reconstruction and defence.
Meanwhile, Ukrainian President Volodymyr Zelenskyy has suggested that peace deal proposals negotiated with US officials are nearing completion. US representatives stated this week that 90% of problematic issues between Ukraine and Russia had been resolved during talks in Berlin, though Russian officials were not present. Moscow has repeatedly condemned any use of its frozen assets as theft, threatening retaliatory seizures of European holdings in Russia.
The UK's action on the Abramovich funds marks a significant step in converting frozen Russian-linked wealth into direct support for Ukraine, setting a precedent for similar actions globally.
