Roman Abramovich faces being sued by the government after he missed a deadline to release the £2.35billion he raised from selling Chelsea in 2022.
The Russian billionaire had until March 17 to hand over the money, which the government intends to spend on humanitarian aid in Ukraine.
Abramovich’s representatives claimed in November that the government was ‘paralysing’ any attempts to release the funds. They granted him a licence to do so in December – alongside a 90-day ultimatum.
The oligarch was forced to sell Chelsea in 2022 after being sanctioned over his alleged ties to Vladimir Putin following Russia’s invasion of its neighbour.
A government spokesperson said: ‘We gave Roman Abramovich his last chance to do the right thing. Once again, he has failed to make the donation he committed to.
‘We will now take further steps to ensure that the promise he made at the time of the Chelsea sale is kept.’
Former Chelsea owner Roman Abraomovich faces being sued by the government
In 2022, Abramovich pledged that the money from the sale would be used ‘for the benefit of all victims of the war in Ukraine’, leaving open the possibility of donating to Russian people too.
However, it emerged in November that only the ‘net proceeds’ would be gifted to a charitable foundation because loans totalling £1.54bn need to be settled with Abramovich-owned companies first.
This would leave around £987million of the £2.35bn to be given to war victims.
The Office of Financial Sanctions (OFSI) issued a licence in December for the cash to go to a humanitarian foundation but Abramovich’s approval never arrived.
Back in June, the government threatened Abramovich with legal action. Chancellor Rachel Reeves and then-foreign secretary David Lammy warned that ministers were ‘deeply frustrated’ at the lack of progress in unlocking the frozen funds.
‘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,’ a statement read at the time.
‘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 pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.’
They want him to release all of the funds raised from selling Chelsea so they can send it to humanitarian causes in Ukraine
The Telegraph reports that government officials wrote to Abramovich’s team on Monday notifying them of possible legal action.
A major complication a dispute between Abramovich and the British government over where the Chelsea sale money should be spent.
Abramovich, 59, has been clear since 2022 that he wants the cash to be used to support both Ukrainians and Russians caught up in the war.
All the money from the sale remains in the bank account of Fordstam Ltd, the former parent company of Chelsea which is owned by Abramovich.
Fordstam Ltd’s much delayed accounts were finally published in November and suggested that loans to the Abramovich-owned company totalling £1.54billlon needed to be paid off first before any money can go to support Ukrainian charities.
If the loans and other costs are paid in full, this would mean that around £987million of the £2.35billion sale price would remain available for good causes.
American billionaire Todd Boehly and Clearlake Capital paid £2.5billion for Chelsea in 2022, and after transaction-related expenses such as legal fees, £2.3billion was left.
At the time of the sale, Roman Abramovich’s press office said he ‘wanted the proceeds to be transferred to a charitable foundation for the needs of the victims on both sides of the conflict between Russia and Ukraine’.
