Russian oligarch Roman Abramovich is disputing with the British government over the allocation of £2.5 billion generated from the sale of Chelsea FC, maintaining his right to control the funds despite international sanctions.
Chelsea FC Sale Proceeds Dispute
The UK and the European Union imposed sanctions on Abramovich in 2022, freezing his assets in response to Russia’s invasion of Ukraine, citing his connections to Vladimir Putin’s regime. This led to the expedited sale of the Premier League club to a consortium headed by US businessman Todd Boehly.
However, the £2.5 billion from the sale has remained in a UK bank account due to disagreements regarding its intended use. Britain seeks to earmark the money exclusively for Ukraine, aligning with a broader European effort to hold Moscow accountable for the costs of the war.
Abramovich has expressed a desire for greater flexibility in how the funds are distributed. When announcing the sale in March 2022, he stated the proceeds would benefit “all victims of the war in Ukraine,” potentially including Russian recipients.
Lawyers representing Abramovich, from Kobre & Kim, asserted that the money remains “wholly owned” by Fordstam Ltd, the entity through which Abramovich financed Chelsea, channeling funds from oil deals through a network of offshore companies.
In a letter sent ahead of a March 17 deadline set by the UK government, the lawyers accused ministers of making “politically charged and highly publicised statements” about Abramovich. They affirmed his continued commitment to charitable donations and blamed government restrictions for the delay.
“The UK government appears to be treating this proposed donation as a form of punitive measure against Mr Abramovich,” the lawyers stated in the letter, as seen by Reuters.
British Foreign Secretary Yvette Cooper responded, stating, “This money was promised to Ukraine over three years ago. It is time Roman Abramovich does the right thing but if he won’t we will act.”
The British government previously warned Abramovich of potential court action if he did not release the funds. Keir Starmer noted in December that “the clock is ticking” on reaching a resolution.
Abramovich’s legal team indicated that any formal confiscation proceedings initiated by the government would be contested in court. They reiterated that the donation proposal predated the sanctions and that Abramovich remains dedicated to using the funds for charitable purposes.
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