UK Prime Minister Keir Starmer has issued a warning to Roman Abramovich, stating that “the clock is ticking” for the oligarch to fulfill his pledge to donate the proceeds from the sale of Chelsea Football Club to humanitarian efforts in Ukraine. During a session in Parliament on Wednesday, Starmer confirmed that the UK government has granted a licence allowing the transfer of the sale proceeds to a new foundation dedicated to aiding humanitarian causes in Ukraine.
Starmer emphasized the urgency of the situation, saying, “My message to Abramovich is this: honour the commitment you made and pay up now. If you don’t, we are prepared to go to court so every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
Abramovich sold Chelsea in May 2022 after being sanctioned due to President Vladimir Putin’s invasion of Ukraine earlier that year. He had initially pledged to donate the proceeds from the club’s sale to support the Ukrainian people. However, progress has stalled as he has yet to reach an agreement with the government regarding the disbursement of the funds, which remain frozen in a UK bank account.
The UK government indicated that Abramovich has raised objections to their requirement that the funds be used exclusively for Ukraine. The recent decision to issue a licence is seen as a strategic move to compel Abramovich to meet his commitments before the government resorts to legal action.
In June, discussions of potential legal measures emerged when Chancellor Rachel Reeves and then-foreign secretary David Lammy expressed their frustration at the lack of progress with Abramovich. On Wednesday, Reeves reiterated that it is “unacceptable” for the money to remain frozen and assured MPs that ministers are “prepared to do what is necessary” to ensure the funds reach Ukraine.
The UK Treasury has stated that it will consider any proposals from Abramovich for the voluntary transfer of the funds. Nevertheless, it remains unclear what legal mechanisms could be employed to enforce the transfer if necessary. Under the terms of the new licence, the proceeds must specifically go to humanitarian causes in Ukraine, while any future gains may be allocated more broadly to victims of conflict globally.
As the situation develops, the UK government expects Abramovich to respond within the coming months. This ongoing issue reflects the complexities surrounding the financial commitments made by individuals with ties to Russia amidst the international response to the ongoing conflict in Ukraine.
