Roman Abramovich, the Russian billionaire who made his pile in the oil and gas industry, is getting burned. He needs to free up £2.5 billion that he received from the sale of Chelsea Football Club. After Russia invaded Ukraine, the UK government issued him a special license to sell the club. This decision led to a multi-million dollar financial bonanza for him. The proceeds are still frozen in a British bank account because sanctions against Abramovich are still in place.
In 2022, Abramovich signed a promise. He has suggested that the money raised from the Chelsea sale would go to aid “all victims of the war,” including Ukrainian and Russian victims. The UK government has been adamantly pressing for these funds to be directed towards humanitarian assistance. They work to support the victims of the ongoing war in Ukraine. Her testimony paints a disturbing picture of how the situation has changed for the worse. Now, the PM and Labour leader Sir Keir Starmer are calling for action to be taken against Abramovich today.
According to National Treasury government spokesman, this means that Mr. Abramovich should move fast. If he doesn’t, the government is absolutely prepared to go to court to make them live up to their commitments. The urgency of the situation has increased dramatically as Abramovich has 90 days to meet before lawsuits are pursued.
The Chancellor of the Exchequer, Rachel Reeves, emphasized the critical nature of the funds, declaring, “It is unacceptable that more than £2.5bn of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account.” In theory, Abramovich can’t use his billions because the sanctions that were placed on him do not allow him to access his money. These sanctions are due to his alleged personal ties to Russian President Vladimir Putin, which he has disputed.
Though repeatedly pressed by UK officials, spokespeople for Abramovich haven’t made available representatives to discuss the issue. They stressed that the billionaire’s intentions are to assist every victim of the war. It is the opposition’s vagueness on how the money would be spent that still seems to be driving the impasse.
In addition to government pressures, Starmer has urged Abramovich to “honour the commitment that you made and pay up now,” warning that legal measures could be taken if he does not comply. He stated, “If you don’t we’re prepared to go to court and ensure that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
The picture that emerges is one of the fragile, yet powerful, intersection of humanitarian need and international finance. The government is committed to making sure Abramovich’s profitable sale proceeds are spent in the right way. The need for transportation improvements, the basis for releasing this next wave of TIGER funds, is clearly urgent. Hundreds of thousands still deal with the fallout from the still-ongoing war.