UK Government Moves to Enforce Humanitarian Fund Transfer from Roman Abramovich

The UK government has formally directed Roman Abramovich to transfer £25 billion from the sale of Chelsea Football Club to humanitarian causes in Ukraine. In a stern warning, Labour leader Keir Starmer informed the House of Commons that the billionaire must comply with the fund's commitment or face legal action. The transfer of funds is aimed at establishing a new foundation to aid Ukraine amidst ongoing conflict and humanitarian crises. Starmer emphasized the urgency of the situation, stating, "The clock is ticking on Roman Abramovich to honor the commitment he made when Chelsea FC was sold and transfer the £25 billion to a humanitarian cause for Ukraine. 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." The Russian billionaire's sale of Chelsea in 2022 took place under pressure from the UK government following Russia's invasion of Ukraine. As part of the sale agreement, Abramovich was granted a special license, allowing him to sell the club provided that the proceeds were used to support victims of the conflict in Ukraine. However, the funds, currently frozen in a UK bank account controlled by Abramovich's company, Fordstam, have been stalled due to complications surrounding discussions on their allocation. The British government, distressed by the stagnant situation, has expressed determination to intervene. Chancellor Rachel Reeves remarked, "It is unacceptable that more than £25 billion owed to the Ukrainian people can remain frozen in a UK bank account. It's time for Roman Abramovich to pay up. If he doesn't act, we are prepared to do what is necessary to ensure that money gets to the Ukrainian people." Ministers have reported that negotiations with Abramovich for transferring these funds have been ongoing for several years, with no resolution in sight. Should Abramovich continue to stall, Starmer signaled that the government is ready to escalate the issue to the courts. According to reports, legal action is becoming a necessary path to ensure that the funds assist those in need. Moreover, the complexity of the situation is compounded by Abramovich's indecision regarding whether the money should be used solely for Ukrainian humanitarian efforts or if it could be allocated more broadly to victims of conflicts worldwide. Under the terms of the license, the funds are mandated to assist humanitarian causes in Ukraine but cannot benefit Abramovich or other sanctioned individuals. At the same time, Ukraine's President Volodymyr Zelenskyy has indicated that proposals negotiated with US officials for a peace deal to resolve the ongoing war could soon be finalized. US sources mentioned that approximately 90% of issues hindering progress between Russia and Ukraine have been addressed during recent talks, although discussions have yet to involve Russian officials. On a parallel track, European leaders are evaluating plans to utilize frozen Russian assets to finance Ukraine's recovery over the coming years. A meeting of European leaders is anticipated to address the proposal, set to begin later this week. This strategy could involve an initial loan of €90 billion (£78 billion) from the EU using frozen cash at Euroclear in Brussels, although Russia's stance on these funds has been one of objection, insisting that such actions would constitute theft. In summary, the UK government's commitment to ensure that Abramovich's funds reach humanitarian efforts in Ukraine highlights both the individual responsibilities of oligarchs under sanctions and the broader international collaboration needed to support those affected by the conflict. As discussions continue and potential legal actions loom, the eyes of the world remain on this unprecedented situation. Related Sources: • Source 1 • Source 2