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Former Chelsea chairman Roman Abramovich has been given a final warning to transfer £2.5bn from the sale of the English club, after the funds were frozen, or face legal action.
The British government, led by the Prime Minister, Sir Keir Starmer, has announced that it will issue a formal license allowing the transfer of these funds due to humanitarian needs in Ukraine, where the money is urgently needed to support victims of the ongoing war.
The British Government's Ultimatum
In a statement to MPs, former Prime Minister Sunak stressed the urgency of the situation, saying: "The clock is running out. Honor the commitment you have made and pay now, and if you don't, we are prepared to go to court." He added that the £2.5 billion, which has been frozen since 2022, should be used to support the Ukrainian people, including buying essential humanitarian supplies and helping those who have been injured, displaced or left without family by the Russian invasion.
" This is a good day for justice and for the people of Ukraine ," Sunak said, noting that the money had been "frozen" in a UK bank account for a long time. Such funds, which Abramovich promised to help Ukraine, should now be used to support the Ukrainian people in this difficult period.
A Last Chance for Abramovich
The government's decision follows a promise by Abramovich three years ago to donate the proceeds from the sale of Chelsea to Ukraine. However, despite this commitment, he has yet to transfer the funds. Now, the British government is giving the oligarch one last chance to act or face legal action.
Sir Keir Starmer added that this step is essential to ensure that the money, which is "frozen in a UK bank account," goes directly to those in need. " We are deeply disappointed that an agreement has not yet been reached with Mr. Abramovich ," he said. " But, if necessary, we are prepared to go to court ."
Abramovich's Passport and Asset Freeze
Abramovich sold Chelsea in 2022 for £4.25bn after sanctions were imposed on him over his close ties to Russian President Vladimir Putin. Despite his commitment to facilitating the release of five British prisoners of war from Ukraine, he has faced significant legal challenges over the freezing of his assets.
The government has been engaged in a dispute with Abramovich's legal team over the release of the funds, with delays caused by disagreements over where the money should go. The issue has been exacerbated by Abramovich's insistence that the money be used for "all victims" of the war, rather than specifically for humanitarian causes in Ukraine.
Frustration and Legal Threat
Rachel Reeves expressed her frustration, saying: " It is unacceptable that £2.5 billion, which is owed to the Ukrainian people, is still frozen. It is time for Roman Abramovich to pay up ."
Reeves, along with former Foreign Secretary David Lammy, has been pushing for the transfer of funds to support those suffering under the Russian occupation. They warned that if Abramovich does not act, the government is prepared to take legal action to enforce the donation.
The Big Picture of the Issue
So far, the UK has frozen around £24 billion of Russian assets, while the EU has frozen more than €150 billion. Abramovich's refusal to release these funds has become a symbol of the ongoing efforts to hold Russian oligarchs accountable for supporting Putin's regime and the war in Ukraine.
The pressure on Abramovich underscores the commitment of Western states to ensure that Russian assets are used to help Ukraine recover and assist its citizens who are facing the devastating consequences of the Russian occupation.
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