Chelsea sale funds earmarked for Ukraine war victims still haven't been released

13 December 2023 , 11:15

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Former Chelsea owner Roman Abramovich (Image: AFP via Getty Images)

Around £2.5bn from Roman Abramovich's sale of Chelsea remain frozen due to a "disagreement" over how the money will be used.

Abramovich sold Chelsea to a consortium led by Todd Boehly and Clearlake Capital in May 2022 for £4.25bn, with the Russian oligarch stating he would donate the "net proceeds" of the sale to the "victims of the war in Ukraine".

"I have instructed my team to set up a charitable foundation where all net proceeds from the sale will be donated," Abramovich said in a statement. "The foundation will be for the benefit of all victims of the war in Ukraine.

"This includes providing critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery." However, 18 months on those funds have still not been released with the UK government wanting guarantees the money will go to "Ukrainians in Ukraine and not elsewhere".

"The proceeds from the sale are frozen in a UK bank account," Europe Minister Leo Docherty told the House of Lords European Affairs Committee. "We're now going through a process of independent experts establishing a foundation to manage the money.

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"The key difference… is whether the funds get used in Ukraine or for Ukrainians outside of Ukraine. It's not quick, it's not easy but we've got to ensure this attends to the needs of Ukrainians in Ukraine and not elsewhere."

The deputy director of the sanctions taskforce in the Foreign, Commonwealth and Development Office, Daniel Drake, added: "We wouldn't want to speculate. I think there's a disagreement between those involved in running this fund and the government."

Abramovich sold the club in May 2022 and promised to donate the "net proceeds" of the sale to the "victims of the war in Ukraine" (AFP via Getty Images)

Drake also refused to comment on suggestions Abramovich was responsible for the delay. "We wouldn't want to speculate on what the other side is thinking or intending to do," he continued.

"It is ultimately for them to apply for that licence on the grounds that we made clear in our unilateral declaration – for the funds to be spent in Ukraine. And after all, the purpose of our sanctions is to remedy the harm that Russia is doing to Ukraine.

"That's why we made that clear and that's what he has not done." Abramovich bought Chelsea for £140m from Ken Bates in 2003, but was forced to sell last year after he was sanctioned by the UK government following Russia's invasion of Ukraine.

Matthew Cooper