Nearly three years after Roman Abramovich sold Chelsea Football Club under UK sanctions, the British government is escalating pressure on the Russian billionaire to release £2.5bn from the sale for humanitarian aid in Ukraine, warning that court action is now imminent.
Prime Minister Keir Starmer has made clear that patience has run out, framing the issue as both a moral obligation and a test of the UK’s resolve to ensure Russian-linked wealth is used to help those devastated by war.
What is the concern?
Abramovich, who bought Chelsea in 2003 and transformed the club into a European football powerhouse, was sanctioned by the UK government in 2022 following Russia’s full-scale invasion of Ukraine. His links to the Kremlin, which he has denied, placed him among a group of Russian oligarchs targeted by Western governments.
Under the sanctions regime, Abramovich was forced to sell Chelsea. He was granted a special licence to complete the transaction on one condition, that he would not personally benefit from the proceeds.
When the sale was completed, Abramovich pledged that the £2.5bn raised would be used “for the benefit of all victims of the war in Ukraine”, including “providing critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery”.
Regardless of his promise and commitment, the money has remained frozen in a UK bank account ever since, inaccessible, unused, and locked in a legal and political standoff.
Ukraine-only aid vs “all victims of the war”
What exactly is the fundamental disagreement over how the money should be spent? Let us break it down. The UK government insists the funds must be used exclusively for humanitarian causes in Ukraine, thinking that Ukrainians are the primary victims of Russia’s aggression.
Abramovich, however, has a different perspective altogether. Asked why the funds had not been transferred, the prime minister’s official spokesman said, “He disputes that the funds should be used exclusively for humanitarian purposes in Ukraine. He wants to spend them more widely. And negotiations on this have not resulted in an agreed outcome.”
“The clock is ticking”
During an interaction with the press, Prime Minister Starmer issued his strongest warning yet to Abramovich. “My message to Abramovich is this, the clock is ticking, honour the commitment that you made, and pay up now. And if you don’t, we’re prepared to go to court, so every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
Starmer confirmed that the Treasury has now issued a licence allowing the frozen funds to be transferred to a foundation but only under strict conditions that ensure the money goes to humanitarian aid in Ukraine. Downing Street said Abramovich must now set up the foundation and arrange the transfer in line with the licence, or face legal action.
Home Secretary Yvette Cooper said the government had exhausted all avenues to resolve the dispute without litigation. Cooper said tried every possible avenue to get him to do the right thing”, but added that it has “come to nothing”.
She reiterated the government’s position, “It is the Ukrainian people who have suffered as a result of Putin’s aggression as a result of this war, and that is where this funding needs to go.”
Legal action now firmly on the table
Downing Street declined to specify the exact legislation under which court action would be taken, ministers have confirmed that Abramovich has limited time to comply.
It is understood he has 90 days to act before the UK moves to court.Foreign Secretary Yvette Cooper warned against further delays, telling the BBC, “I’m urging him not to try and pursue further court action.” But she confirmed that the government will proceed if necessary.
Chancellor Rachel Reeves was even more direct, “It is unacceptable that more than £2.5bn of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account.” Abramovich’s representatives have declined to comment to BBC.
The UK has taken the step amid a broader European debate over whether frozen Russian assets should be used to support Ukraine’s war effort, reconstruction, and budget needs. EU leaders are set to review proposals this week to redirect proceeds from frozen Russian funds to Kyiv.