UK Government to Sue Abramovich Over Chelsea Sale Proceeds for Ukraine Aid

UK Government Prepares to Sue Abramovich Over Chelsea Sale Proceeds

The UK government is preparing to take legal action against Roman Abramovich in an attempt to free up over £2 billion from the sale of Chelsea FC. This money is intended to be used as aid for Ukraine.

Ministers have grown increasingly frustrated by the lack of agreement with Abramovich on how the funds should be spent. They are now prepared to fight him in court to gain access to the money. This comes as the government seeks alternative sources of funding for Ukraine, following the US decision to freeze military aid and cut off intelligence sharing.

A source close to the government stated, "There is a fundamental disagreement with Abramovich himself over where the money can be spent, and it seems the law is going to be the only way to resolve that."

Abramovich sold Chelsea in 2022 for around £2.5 billion under pressure from the British government following Russia's invasion of Ukraine. He was granted a license to sell the club on the condition that the proceeds be used to support victims of the war.

However, the government and Abramovich have been at odds over whether the money should be spent exclusively in Ukraine or if it can be used elsewhere. The funds are currently frozen in a UK bank account controlled by Abramovich's company, Fordstam.

The government has promised to establish a foundation to distribute the money, but this has not yet been done. Labour leader Keir Starmer is facing increasing pressure to release the funds, particularly as he recently cut the aid budget to increase defense spending.

Foreign Secretary David Lammy has invited Mike Penrose, the former head of Unicef UK, to a meeting to discuss freeing up the money. Lammy is considering legal action as a potential way to break the deadlock with Abramovich.

The government is also exploring the possibility of seizing frozen Russian assets across Europe, estimated to be worth around $350 billion, and using them for aid or to purchase weapons. However, this move faces opposition from France and Germany, who are concerned about the legal implications and the potential impact on future investments.

The government believes they could win a legal case to seize the assets by arguing they should be treated as proceeds of crime and used as reparations for the victims of those crimes, in this case, Ukraine. However, this legal argument is untested and could involve a lengthy legal process.