UK Prime Minister Keir Starmer stated that the government has formally approved the transfer of £2.5 billion to Ukraine, which Russian oligarch Roman Abramovich received from the sale of Chelsea Football Club.
Now the transfer of funds must be approved by Abramovich himself — otherwise, the British government will sue him.
Starmer stated during a speech in Parliament on Wednesday that the proceeds from the sale of Chelsea should be directed to a special fund for Ukraine. According to the Prime Minister, Abramovich has one last chance to approve the transfer of money before authorities begin legal proceedings.
"I want to make it clear to Abramovich: the clock is ticking, fulfill your promise and pay up right now. And if you don’t, we are ready to go to court and ensure that every penny goes to the people whose lives have been shattered by Putin’s illegal war," Starmer said.
Unofficially, it is known that the government has given Abramovich 90 days to take the necessary actions.
Abramovich's representatives declined to comment.
After Russia's invasion of Ukraine, the UK government allowed Abramovich, who was sanctioned for his ties to Vladimir Putin, to sell Chelsea to American businessman Todd Boehly and private investment firm Clearlake Capital.
This deal was approved on the condition that £2.5 billion from the sale would be donated to charities helping those affected by the war in Ukraine.
After the sale of the club, the funds were directed to a special bank account and frozen for their further transfer to a special fund for Ukraine.
Three years later, this amount is still frozen in a Barclays bank account — reportedly due to disagreements over how exactly this money should be spent.
Abramovich is said to want the money to benefit "all victims" of the war, including those in Russia. The UK government insists that it should only be spent on humanitarian aid within Ukraine.
In June, ministers stated that they were "disappointed" by the lack of an agreement with Abramovich.
Legally, the money still belongs to Abramovich and cannot be moved or used without a license from the Office of Financial Sanctions Implementation, a division of the Treasury responsible for enforcing sanctions.
However, on Wednesday, Starmer informed parliamentarians that the government is now issuing such a license.
"We are issuing a license for the transfer of £2.5 billion received from the sale of Chelsea Football Club, which has been frozen since 2022," he said.
"It is unacceptable for over £2.5 billion owed to the Ukrainian people to remain frozen in a bank account in the UK," emphasized Finance Minister Rachel Reeves. In her statement to Parliament, she said that "any proposal from Mr. Abramovich regarding the use of this clear legal mechanism to create a fund and transfer the funds under the terms of the license will be considered."
Abramovich is alleged to have close ties to Russian President Vladimir Putin. He has denied this.
In 2003, Abramovich purchased Chelsea for £140 million. Under his ownership, Chelsea experienced the most successful period in its history, winning two Champions Leagues, five Premier Leagues, five FA Cups, two Europa Leagues, and three League Cups. In February 2021, Chelsea won its first Club World Cup, and in August, the UEFA Super Cup.
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