The Prime Minister has stated that Russian oligarch Roman Abramovich must “pay up now” to victims of the war in Ukraine or face potential court action.
Mr. Abramovich, the former owner of Chelsea Football Club, pledged in 2022 that the £2.5 billion obtained from the club’s sale would be allocated to benefit victims of the Russian invasion of Ukraine.
However, the release of these funds, currently held in a frozen British bank account, has been delayed due to a disagreement over the precise allocation of the money.
Speaking in the Commons on Wednesday, Sir Keir Starmer issued a clear message: “My message to Abramovich is clear: the clock is ticking.”
The government advocates for the funds to be used for humanitarian aid, while Mr. Abramovich has maintained that they should benefit “all victims of the war,” potentially including Russians.
While Mr. Abramovich cannot access the money due to UK sanctions, the proceeds from the Chelsea sale remain legally his.
Sir Keir updated MPs, stating that the UK has issued a license “to transfer £2.5bn from the sale of Chelsea Football Club that’s been frozen since 2022.”
In a direct warning to Mr. Abramovich, he added, “Honor the commitment that you made and pay up now, and if you don’t we’re prepared to go to court and ensure that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
Foreign Secretary Yvette Cooper echoed this sentiment on the BBC, stating Mr. Abramovich “needs to honour that commitment, pay that money”.
When questioned about the possibility of a legal battle prolonging the process, Ms. Cooper stated, “I’m urging him not to try and pursue further court action.”
She confirmed, however, that the government is prepared to pursue legal action should he fail to act.
Representatives for Mr. Abramovich have declined to comment on the matter.
The Treasury has clarified that under the terms of the license, the funds must be directed towards “humanitarian causes” in Ukraine and cannot benefit Mr. Abramovich or any other sanctioned individual.
The government initially threatened legal action against Mr. Abramovich in June.
Chancellor Rachel Reeves stated, “It is unacceptable that more than £2.5bn of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account.”
Mr. Abramovich, a Russian billionaire who amassed his wealth in the oil and gas sector, was granted a special license to sell Chelsea following Russia’s invasion of Ukraine, contingent on proof that he would not profit from the sale.
He has been alleged to have strong ties to Russian President Vladimir Putin, allegations which he denies.
It is understood that Mr. Abramovich has 90 days to act before the UK considers initiating legal proceedings.
On Thursday, EU leaders are scheduled to review proposals regarding the use of proceeds from frozen Russian assets to support Ukraine’s budget and defense requirements. Russia has voiced strong opposition to these proposals.
The proceeds have been frozen since the UK government forced the club’s sale following Russia’s invasion of Ukraine.
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