Funds earmarked for Ukraine remain frozen as ministers demand breakthrough
The UK government has issued a stark warning to sanctioned Russian billionaire Roman Abramovich: reach an agreement over the stalled £2.5 billion Chelsea Football Club sale proceeds, or face legal action.
The money — frozen in a UK bank account since Abramovich’s forced sale of the Premier League club in May 2022 — was intended to be used for humanitarian relief in Ukraine following Russia’s full-scale invasion. However, more than two years later, the funds remain untouched, and the impasse between UK officials and Abramovich’s representatives appears no closer to resolution.
In a dramatic escalation, Chancellor Rachel Reeves and Foreign Secretary David Lammy released a joint statement expressing deep frustration over the deadlock and warning of impending court action. “The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion,” the statement read. “We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far.”
Abramovich, who purchased Chelsea FC for a reported £140 million in 2003, was sanctioned by the UK government shortly after Russia’s invasion of Ukraine in February 2022, due to his alleged close ties with President Vladimir Putin — an allegation he denies.
“While the door for negotiations will remain open,” they added, “we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.”
Abramovich, who purchased Chelsea FC for a reported £140 million in 2003, was sanctioned by the UK government shortly after Russia’s invasion of Ukraine in February 2022, due to his alleged close ties with President Vladimir Putin — an allegation he denies. The sanctions forced him to relinquish ownership of the club, and a US-led consortium led by Todd Boehly acquired Chelsea in a high-profile deal under the strict oversight of the UK’s Office of Financial Sanctions Implementation (OFSI).
A central condition of the sale was that the £2.5bn proceeds would be placed in a frozen UK account and eventually channelled towards humanitarian assistance for Ukrainians affected by the war. However, under OFSI rules, the money cannot be moved or accessed without a specific licence, and the authorisation process has stalled amid reported legal and political wrangling.
While negotiations were reported earlier this year between UK officials and representatives of the foundation set up to manage the funds, multiple sources told the BBC that there have been no substantive meetings between ministers and the foundation since Labour came to power in July 2024. Officials now fear the process is gridlocked, and insiders suggest a high-level ministerial decision is required to approve a final framework for distribution.
The delay has raised eyebrows not only for its political implications but also for its financial impact. The £2.5bn, plus accrued interest, represents one of the largest individual charitable commitments linked to the war in Ukraine. Government officials have hinted that unlocking the funds could also ease pressures on the UK’s squeezed aid budget, which saw significant cuts earlier this year.
The Chelsea sale proceeds were initially hailed as a landmark moment — a sanctioned oligarch compelled to fund humanitarian relief for victims of a war waged by his home country. But the standoff has since become emblematic of the complexities of asset seizures, international sanctions, and post-war relief politics.
Meanwhile, Abramovich’s legal team has been tight-lipped on the government’s latest warning, though sources close to the oligarch maintain that he remains committed to ensuring the funds reach Ukraine — but only under certain legal protections and frameworks.
As the war in Ukraine grinds on and millions remain displaced or in urgent need of assistance, patience is running thin in Westminster. With legal action now on the table, the UK government appears ready to force a conclusion to a saga that has dragged on far too long — and to finally deliver on a promise that has remained frozen, both literally and politically.
