Starmer gives Abramovich ultimatum over £2.5bn Ukraine fund
Speaking in the Commons, Sir Keir said the government had now issued a licence allowing the frozen proceeds of the 2022 sale to be transferred, and urged the sanctioned oligarch to honour the pledge
Prime Minister Sir Keir Starmer has warned Russian billionaire Roman Abramovich to release £2.5bn from the sale of Chelsea Football Club to victims of the war in Ukraine or face a legal battle in the UK courts.
Speaking in the Commons, Sir Keir said the government had now issued a licence allowing the frozen proceeds of the 2022 sale to be transferred, and urged the sanctioned oligarch to honour the pledge he made when he sold the club.
The £2.5bn is sitting in a UK bank account and remains frozen under sanctions. Abramovich agreed at the time of the sale that the proceeds would go to those affected by Russia’s invasion of Ukraine.
However, there has been a long-running standoff over how broadly that promise should be interpreted.
The UK government wants the funds directed to humanitarian support for Ukraine.
Abramovich has argued the money should assist “all victims of the war”, which would include Russians as well.
Although he cannot access the money because of sanctions, the funds are still legally his, and ministers have been seeking a way to move them without breaching sanctions rules.
The Treasury has stressed that, under the new licence, the money can only be used for humanitarian purposes in Ukraine and cannot benefit Abramovich or any other sanctioned individual.
Foreign Secretary Yvette Cooper told the BBC that Abramovich “needs to honour that commitment, pay that money,” and confirmed ministers are prepared to litigate if he does not cooperate.
Asked whether a court fight could delay the process for years, she urged the oligarch not to force the government down that route, but said legal action would go ahead if he refused to act.
It is understood Abramovich has around 90 days to comply before the government moves to take the matter before the courts. His representatives declined to comment.
Chancellor Rachel Reeves has already described the situation as “unacceptable”, saying it was wrong that more than £2.5bn “owed to the Ukrainian people” remained frozen in a UK account.
Abramovich, who built his fortune in Russia’s oil and gas sector, was given a special licence to sell Chelsea after the full-scale invasion of Ukraine, on condition that he did not profit personally from the transaction.
He has long been accused by Western governments of having close links to President Vladimir Putin – allegations he has consistently denied.
The dispute over the Chelsea proceeds comes as EU leaders are preparing to discuss proposals to use income from frozen Russian state assets to help meet Ukraine’s huge reconstruction and defence costs, a move fiercely opposed by Moscow.
