Roman Abramovich, one of Russia’s new billionaires, made his money in oil and gas. Today, the UK government can potentially sue him in court for any proceeds from the sale of Chelsea Football Club. Roman Abramovich, the former majority owner of the club, has been heavily scrutinized for his supposed ties to Russian President Vladimir Putin. He’s long denied these allegations.
After Russia’s invasion of Ukraine, the UK government issued Abramovich a special licence allowing him to sell Chelsea. This license was heavily conditioned. Thus, he had to show that he would not gain financially from the sale. Abramovich announced his plans to use the money to help support victims of Ukraine’s conflict. This remarkably unfortunate statement has set off a firestorm.
The sale finally went through at £2.5 billion. Money is currently stuck in a UK bank account due to sanctions placed on Abramovich following the invasion starting in February 2022. While the funds are still technically Abramovich’s, he can’t touch it right now due to UK sanctions.
The UK government has also committed to ensuring that these funds are used only for humanitarian operations within Ukraine. Shadow Chancellor Rachel Reeves and Shadow Foreign Secretary David Lammy have made clear their intention to make sure this is remedied as soon as possible. They articulated their determination by stating, “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.”
That position is vehemently disputed by Abramovich’s legal team as well as the UK government. They are fighting tooth and nail over how the proceeds can be used. Abramovich proposed that the money be given through a foundation to benefit the victims of war on all sides, including victims in Russia. The government has made it clear that its main focus would be on humanitarian assistance inside Ukraine.
Against this backdrop of the standoff, Reeves and Lammy underscored their willingness to litigate should it come to that. They stated, “While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required.” Their statements underscore the growing imperative to get humanitarian relief to the people in Ukraine who are hurting. They’re urging that support to get to them “as quickly as possible.”
As discussions continue, the outcome remains uncertain. The UK government’s position underscores its commitment to addressing humanitarian needs arising from the conflict while navigating complex legal and ethical considerations surrounding Abramovich’s wealth and intentions.