The UK government has signaled its intent to initiate legal proceedings against sanctioned Russian billionaire and former Chelsea Football Club owner Roman Abramovich over the £2.5 billion proceeds from the club’s 2022 sale.
The move aims to ensure the funds are redirected exclusively to humanitarian relief efforts in Ukraine.
In a joint statement issued on Tuesday, Chancellor of the Exchequer Rachel Reeves and Foreign Secretary David Lammy expressed frustration over the ongoing impasse with Abramovich, emphasizing the government’s commitment to seeing the proceeds benefit victims of Russia’s military aggression.
“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. While the door for negotiations will remain open, we are fully prepared to take legal action if necessary.”
The £2.5 billion was generated from the sale of Chelsea FC in May 2022 to a consortium led by U.S. businessman Todd Boehly and Clearlake Capital, following the imposition of UK sanctions on Abramovich due to his alleged ties to Russian President Vladimir Putin.
At the time of the transaction, Abramovich stated that all net proceeds would be donated to a charitable foundation supporting victims of the war in Ukraine.
However, nearly three years later, the funds remain frozen in a UK bank account, pending regulatory approval from the Office of Financial Sanctions Implementation (OFSI).
The delay stems from disagreements over the scope of the humanitarian assistance. While the UK insists the money be deployed exclusively for Ukrainian relief, Abramovich reportedly wants the proceeds distributed more broadly, including to Russian victims of the conflict.
The stalemate has drawn criticism from political and humanitarian stakeholders. The UK government’s latest declaration signals a strategic escalation, potentially setting the stage for a court battle to unlock the frozen assets and enforce the original post-sale commitment.
Legal analysts note that despite sanctions, the funds remain Abramovich’s legal property unless transferred voluntarily or through a court order. A successful legal challenge could establish new precedents for handling proceeds tied to sanctioned individuals, especially in cases involving pledges tied to humanitarian relief.
“This case highlights the legal and diplomatic challenges involved in converting frozen funds into aid for conflict victims,” said a senior London-based sanctions compliance advisor. “It’s not just a matter of intent—it must pass through a framework of domestic and international law.”
The potential court case could further complicate the UK’s sanctions enforcement regime, particularly as it balances asset freezes with reputational and ethical considerations in global conflict resolution.
As of this report, Abramovich’s representatives have not issued a public response to the government’s threat of legal action. Negotiations reportedly remain ongoing, but the UK’s position is that continued delays are no longer acceptable amid pressing humanitarian needs.
Should the legal process advance, the UK may seek a court-supervised mechanism to oversee disbursement of the funds in line with its policy priorities—primarily, support for displaced persons, infrastructure reconstruction and medical aid within Ukraine.
The situation remains fluid, but the government’s position reflects a broader international push to utilize frozen Russian-linked assets to support Ukraine, as the conflict approaches its third year with no resolution in sight.
