Prime Minister Keir Starmer has declared that the UK government will formally instruct the transfer of £2.5 billion from the sale of Chelsea Football Club to support humanitarian efforts in Ukraine, issuing a final ultimatum to the sanctioned Russian oligarch Roman Abramovich.
Final Ultimatum Issued to Abramovich
Speaking in the House of Commons, Starmer stated that the funds, which originate from the 2022 sale of the London club, are to be converted into a new foundation dedicated to Ukraine. The government is preparing to issue a licence for the transfer, which it describes as the last opportunity for Abramovich to comply voluntarily before facing legal proceedings.
The Russian billionaire was compelled to sell Chelsea in 2022 following pressure from the British government in the wake of Russia's full-scale invasion of Ukraine. A specific licence was granted for the sale on the condition that the proceeds would be used to support victims of the war.
Years of Frozen Funds and Deadlock
Since the sale, the enormous sum has been held in a frozen UK bank account controlled by Abramovich's company, Fordstam. A prolonged deadlock has ensued, with negotiations stalling over a key point of contention: whether the money must be spent exclusively within Ukraine's borders or can also be used for humanitarian aid outside the country.
Ministers have emphasised that they have spent years attempting to reach an agreement with Abramovich and secure his cooperation. The government has pledged to establish a foundation to disburse the money, to be headed by Mike Penrose, the former chief executive of Unicef UK.
Legal Action Looms as Peace Talks Continue
Starmer made clear that the government is fully prepared to take Abramovich to court to access the frozen £2.5bn. This move aligns with reports from as early as March which suggested ministers believed legal action would ultimately be necessary to break the impasse.
This development coincides with ongoing international efforts to support Ukraine. Ukrainian President Volodymyr Zelenskyy has indicated that proposals for a peace deal, negotiated with US officials, could be finalised soon. Simultaneously, European leaders are discussing separate plans to use frozen Russian assets, worth approximately €185bn held in Brussels, to finance Ukraine's recovery in the coming years.
