Russian oligarch Roman Abramovich has escalated his dispute with the British government over the £2.5bn raised from the sale of Chelsea FC, insisting the money is his to allocate despite international sanctions imposed on his assets.
The UK and EU imposed sanctions on Abramovich in 2022, freezing his assets in response to Moscow’s large-scale invasion of Ukraine, citing his links to Vladimir Putin’s regime.
The move triggered a hasty sale of the Premier League club to a consortium led by American businessman Todd Boehly.
However, the £2.5bn raised from the sale has remained blocked in a UK bank account since then due to a dispute over how it should be used.
Britain wants the money reserved for use only in Ukraine, in line with broader European pressure for Moscow to foot the bill for the devastation caused by its invasion.
However, Abramovich has indicated he wants more flexibility over how the money will be spent.
When he announced his intention to sell the club in March 2022, he said the proceeds would be used “for the benefit of all victims of the war in Ukraine”, leaving open the possibility that the money could be diverted to Russian recipients.
On Monday, Abramovich’s lawyers at Kobre & Kim said the cash is still “wholly owned” by Fordstam Ltd, the vehicle through which the billionaire financed Chelsea, funneling cash from controversial oil deals through a maze of offshore companies.
In the letter, sent before the March 17 deadline set by the UK government, the lawyers accused ministers of making “politically charged and highly publicized statements” about the oligarch.
They said Abramovich remains fully committed to using the money for charitable purposes and that government restrictions on how to spend it were to blame for the delay.
“The UK government appears to be treating this proposed donation as a form of punitive measure against Mr Abramovich,” the lawyers said in the letter, seen by Reuters.
Responding to the letter, Britain’s Foreign Secretary Yvette Cooper said: “This money was promised to Ukraine more than three years ago. It is time for Roman Abramovich to do the right thing, but if he doesn’t, we will act.”
The British government warned Abramovich last year that he must release the money or face being taken to court.
Keir Starmer said in December that “time is ticking” to find a solution.
However, Abramovich’s lawyers said that if the government opens formal confiscation proceedings, it would be challenged in court.
“The proposal to donate these proceeds was initiated by Mr. Abramovich prior to the imposition of sanctions, and he remains fully committed to ensuring that the funds are used for charitable purposes,” the letter said.
