The UK government is moving towards legal action after Roman Abramovich missed a deadline to release billions from his 2022 Chelsea sale, deepening a dispute over funds promised to Ukraine war victims
The UK government has made clear it is preparing to take Roman Abramovich to court after the sanctioned Russian billionaire missed a deadline to release the proceeds from his 2022 sale of Chelsea Football Club.
Per reports from The Guardian, government officials confirmed on 17 March that solicitors acting on their behalf had contacted Abramovich’s legal team warning that court proceedings are being prepared, after deadline passed without movement on the funds.
The money – sitting in a UK bank account controlled by Abramovich’s company Fordstam – has remained inaccessible since the club changed hands four years ago.
The development came on the same day Chelsea were handed a Premier League record £10.75m ($14.3m) fine and a suspended transfer ban over £47m in undisclosed payments made through entities linked to Abramovich during his ownership between 2011 and 2018.
A government spokesperson said Abramovich had been given a final opportunity to honour the commitment he made at the time of the sale, and had again failed to act. Ministers are now moving to ensure “the promise he made at the time of the Chelsea sale is kept.”
How the donation pledge stalled
Chelsea was sold in May 2022 to a consortium led by US investor Todd Boehly and private equity firm Clearlake Capital in a deal valued at between £2.35bn and £2.5bn.
The transaction was facilitated by a government licence – granted after Abramovich was sanctioned in the wake of Russia’s full-scale invasion of Ukraine – tied to a commitment that the proceeds would fund humanitarian causes.
Abramovich announced at the time that all net proceeds would be donated for the benefit of all victims of the war in Ukraine. That pledge has since become the central point of dispute, with the government insisting the funds must be ring-fenced for use exclusively within Ukraine.
Abramovich’s position, according to his legal team, has long-been that the definition of eligible beneficiaries should be broader – a stance which could arguably open the door to funds reaching Russian nationals, i.e. injured soldiers.
In December, the government granted a new licence designed to allow the cash to flow into a dedicated humanitarian foundation, but releasing the funds required Abramovich’s consent, which he withheld. The resulting 90-day window closed this week without resolution.
Donation figure in dispute amid legal complications
There is also the issue of the exact donatable sum, which is being contested. The government is pursuing the full amount, variously cited as between £2.35bn and £2.5bn depending on accrued interest.
Abramovich’s position, as set out in Fordstam’s most recent accounts, is that he is only obligated to donate around £987m, the net proceeds after repaying a £1.4bn loan advanced to Chelsea during his ownership by Jersey-registered entity Camberley International Investments.
The picture is complicated further by an active criminal investigation in Jersey into whether funds held by Camberley International Investments – which may include money from the Chelsea sale – were unlawfully obtained. Abramovich denies any wrongdoing and is challenging that process through the courts.
His legal team has separately put the government on notice that any attempt to seize the funds outright would face a legal challenge, as noted by Reuters. They argue that the original donation pledge was made voluntarily before sanctions were applied and cannot now be treated as a binding obligation.
Should the government proceed, Abramovich’s team has indicated it will contest any confiscation proceedings in court.
