UK to transfer £2.5bn of Abramovich funds to Ukraine — Starmer

The UK government has said it will issue formal instructions to transfer £2.5bn from Roman Abramovich’s sale of Chelsea FC to humanitarian causes in Ukraine, giving the billionaire a final opportunity to comply before court action is taken.

Keir Starmer told MPs that the funds, frozen under UK sanctions, would be converted into a new foundation for Ukraine.

“The clock is ticking on Roman Abramovich to honour the commitment he made when Chelsea FC was sold and transfer the £2.5bn 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.”

Abramovich sold Chelsea in 2022 under pressure from the British government following Russia’s invasion of Ukraine. The UK had granted him a licence to sell the club on the condition that the proceeds support Ukrainian victims. The funds have been held in a UK bank account managed by Abramovich’s company, Fordstam.

Negotiations over whether the money could be spent outside Ukraine or exclusively within the country have stalled, leaving the funds frozen. The government plans to establish a foundation to manage the money, led by Mike Penrose, former head of UNICEF UK.

Chancellor Rachel Reeves said it was “unacceptable that more than £2.5bn owed to the Ukrainian people can be allowed to remain frozen in a UK bank account. It’s time for Roman Abramovich to pay up. If he doesn’t act, then we are prepared to do what is necessary to make sure that money gets to the Ukrainian people.”

Ministers said they had sought Abramovich’s cooperation for years and are now prepared to take legal action to access the funds. The government has also stated it will consider any voluntary proposal from Abramovich to donate the money to Ukraine.

Under the licence terms, the proceeds must be used for humanitarian causes in Ukraine, though future gains may be spent more broadly on victims of conflict worldwide. The money cannot benefit Abramovich or other sanctioned individuals.

The announcement coincides with reports that Ukrainian President Volodymyr Zelenskyy and US officials are close to finalising proposals for a peace deal with Russia. Separate talks in Europe are also exploring ways to use frozen Russian assets, including €185bn (£162bn) held at Euroclear, to support Ukraine over the coming years.

Moscow has warned that using these assets would be theft and threatened to seize European private investors’ holdings in Russia.

(The Guardian UK)

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