Prime Minister Keir Starmer has issued a final ultimatum to Russian oligarch Roman Abramovich and stated that “the clock is ticking” for him to release the funds generated from the sale of Chelsea Football Club. The U.K. has formally issued a license that permits the transfer of these frozen billions into a new humanitarian foundation dedicated to Ukraine.
The money has been at the center of a legal and political stalemate since May 2022. Specifically, following the full-scale invasion of Ukraine by Russia, Abramovich was sanctioned by the U.K. government and forced to sell Chelsea Football Club. A consortium led by American businessman Todd Boehly purchased the club for 2.5 billion GBP.
Moreover, at the time of the sale, Abramovich publicly committed to donating the proceeds to all victims of the war in Ukraine. But the funds remained frozen in a U.K. bank account under the control of Abramovich-owned Fordstam Ltd. for over three years because the U.K. and Abramovich could not agree on how the money should be spent.
The reason for the delay has been a disagreement over the scope of the aid. Starmer and Chancellor Rachel Reeves insist that the funds must be used exclusively for humanitarian purposes within Ukraine to help those suffering from the invasion. Officials think that Abramovich wants to send some funds to Russia or Russian-controlled territories.
Nevertheless, the announcement of Starmer marks a major escalation. His government has given Abramovich a 90-day window to comply with the terms of the new license and move the funds. He also stated in the House of Commons that the government is prepared to take Abramovich to court to enforce the agreement made during the 2022 sale.
The funds are intended to be managed by an independent charitable foundation led by former head of UNICEF UK Mike Penrose. The money, including interest and gains, will be used for large-scale humanitarian projects. These include healthcare, housing, and infrastructure repair for the millions of Ukrainians displaced or harmed by the war.
Note that the Starmer administration faces significant pressure to unlock the fund. It has faced criticism for tightening its own foreign aid budget. Freeing the Chelsea cash provides a massive injection of humanitarian support without using taxpayer money. The U.K. also wants to ensure a steady stream of funding for Ukraine amid shifting geopolitics.