UK Government Threatens Legal Action Against Abramovich Over Chelsea Sale Funds
The British government is prepared to take Russian businessman Roman Abramovich to court in a bid to release frozen funds from the sale of Chelsea Football Club. This money, amounting to approximately £2.5 billion ($3.4 billion), is intended to aid victims of Russia’s war in Ukraine but remains locked in a British bank account due to ongoing disputes over its allocation.
Abramovich was sanctioned by the UK government following Russia’s invasion of Ukraine in 2022, prompting the hurried sale of Chelsea under the condition that the proceeds would be utilized to establish a humanitarian charity. However, a disagreement has arisen over how the funds should be spent: the UK government insists that the money be directed solely to Ukraine, while Abramovich advocates for support to all victims of the war.
UK Finance Minister Rachel Reeves and Foreign Minister David Lammy expressed their frustration over the stalemate in a joint statement, emphasizing that they are ready to pursue legal action if an agreement cannot be reached. “While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required,” they stated.
New York-based law firm Kobre & Kim, representing Abramovich, has not yet commented on the situation. The British government is investigating legal avenues to release the funds, with some officials suggesting alternative uses for frozen Russian assets if a resolution cannot be found.
George Foulkes, a member of the House of Lords, highlighted the symbolic importance of the case, stating it could set a precedent for accessing other frozen assets.
Abramovich sold Chelsea to a consortium led by U.S. investor Todd Boehly and private equity firm Clearlake Capital in May 2022, with the stipulation that he would not profit from the sale. As the legal dispute continues, the humanitarian aid intended for victims of the war in Ukraine remains in limbo, underscoring the complexities and challenges surrounding the financial fallout from international conflicts.
