UK Government Set to Sue Abramovich Over £2.35bn Chelsea Sale Proceeds

The UK government is preparing legal action against Roman Abramovich after he failed to meet a deadline to release £2.35 billion from the sale of Chelsea, funds earmarked for humanitarian aid in Ukraine.

The Russian billionaire had until 17 March to transfer the proceeds, which ministers intend to allocate to victims of the ongoing war. However, the deadline passed without the funds being released, prompting fresh moves towards court action.

Abramovich was forced to sell Chelsea in 2022 following sanctions imposed over his alleged links to Vladimir Putin after Russia’s invasion of Ukraine. At the time, he pledged that the proceeds would be used “for the benefit of all victims of the war in Ukraine”, leaving open the possibility that funds could also support affected Russians.

A government spokesperson said Abramovich had been given a final opportunity to honour his commitment but had failed to do so, adding that further steps would now be taken to ensure the pledge is fulfilled.

Disputes over the distribution of the funds have complicated the process. While the government insists the money should be directed towards humanitarian causes in Ukraine, Abramovich has maintained that it should benefit victims on both sides of the conflict.

Further issues have arisen regarding the structure of the funds. It emerged in November that only the “net proceeds” from the sale would be donated, after loans worth £1.54 billion owed to companies linked to Abramovich are settled. This would leave approximately £987 million available for charitable purposes.

The UK’s Office of Financial Sanctions Implementation granted a licence in December to allow the funds to be transferred to a humanitarian foundation. However, final approval from Abramovich has yet to be secured.

Ministers had previously warned of legal action as early as June, expressing frustration over the lack of progress. In a joint statement at the time, Chancellor Rachel Reeves and then Foreign Secretary David Lammy said the government remained determined to ensure the proceeds reach those affected by the conflict.

According to reports, officials formally notified Abramovich’s representatives on Monday that legal proceedings are now being considered.

The funds remain frozen in an account belonging to Fordstam Ltd, Chelsea’s former parent company owned by Abramovich. Financial filings published in November confirmed that outstanding loans must be cleared before any distribution can be made.

Chelsea was sold in 2022 to a consortium led by Todd Boehly and Clearlake Capital for £2.5 billion. After transaction-related costs, approximately £2.3 billion was set aside, with the expectation that it would be channelled into charitable initiatives linked to the war in Ukraine.