Government threatens to sue ex-Chelsea owner over frozen £2.5bn

The UK government is threatening legal action against Roman Abramovich to force him to release £2.5 billion from the sale of Chelsea Football Club, which was intended to aid victims of the war in Ukraine.

Chancellor Rachel Reeves and Foreign Secretary David Lammy have expressed their frustration with the lack of progress in reaching an agreement with Mr Abramovich regarding the frozen funds.

Chelsea was sold in May 2022 after Mr Abramovich, a high-profile oligarch, was sanctioned following Russia's invasion of Ukraine.

The £2.5 billion in proceeds from the sale have been frozen since, with the intention that they be used to help those affected by the conflict.

But an agreement has yet to be reached with Mr Abramovich over the use of the money, which is held in a UK bank account.

The money cannot be moved without a licence from the Office of Financial Sanctions Implementation.

Ms Reeves and Mr Lammy said: “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.

“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.”

In February, a foreign office minister said the Government would look at using properties owned by Mr Abramovich to house Ukrainian refugees.

Labour frontbencher Baroness Chapman of Darlington said it was “an interesting idea” and committed to take it back to her department for it to be explored by civil servants.

The suggestion was made after Foreign Secretary David Lammy said the UK and its European allies should move from freezing Russian assets to seizing them, with the proceeds used to assist Ukraine with its war and reconstruction efforts.