Since the Russian billionaire sold Chelsea in 2022 under pressure from the British government, the funds from the sale have been frozen. PM Starmer is now allowing him to use it, but only for one cause: to help Ukraine.
The UK has issued a licence allowing €2.8 billion from Roman Abramovich's sale of Chelsea Football Club to be transferred to humanitarian causes in Ukraine, warning the Russian oligarch he faces legal action if he fails to comply, Prime Minister Keir Starmer told the House of Commons on Wednesday.
“The clock is ticking on Roman Abramovich to honour the commitment he made when Chelsea FC was sold and transfer the £2.5bn (€2.8bn) to a humanitarian cause for Ukraine,” Starmer said.
“This government is prepared to enforce it through the courts so that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
Under the new licence, proceeds must be directed to humanitarian causes in Ukraine, but future gains may be spent more broadly on victims of conflict worldwide. But the funds cannot benefit Abramovich or other individuals under sanctions.
Out of the public eye
The UK sanctioned Abramovich in a crackdown on Russian oligarchs after Moscow's full-scale invasion of Ukraine in 2022, triggering a rushed sale of the English Premier League football club.
Since then, the funds have been frozen amid a deadlock in negotiations with the Russian billionaire over whether they should be spent exclusively in Ukraine or also outside the country.
"It’s unacceptable that more than £2.5 billion of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account," Chancellor of the Exchequer Rachel Reeves said in the statement.
The UK government has now promised to establish a foundation to disburse the funds, led by Mike Penrose, former head of UNICEF UK.
The move comes as European leaders continue talks this week on a separate plan to use frozen Russian assets to finance Ukraine over the coming years, with a leaders’ meeting scheduled to begin on Thursday.
Abramovich has been out of the public eye since Russia began its full-scale invasion of Ukraine, and the UK sanctioned him over his close links with Russian President Vladimir Putin.
Since then he has kept a low profile and reportedly spends his time between Moscow, Istanbul and Tel Aviv, where he is not under sanctions.
Abramovich reportedly worked on negotiations between Ukraine and Russia to exchange prisoners of war.
While trying to negotiate a peace agreement in the early weeks of Moscow’s full-out war in 2022, Abramovich suffered symptoms of a suspected poisoning.