The UK government is preparing to sue Roman Abramovich after he missed the deadline to release £2.5 billion from the sale of Chelsea Football Club, funds intended to aid humanitarian causes in Ukraine. The move follows a government-issued licence in December permitting the release of the cash to a new foundation, contingent on Abramovich’s approval, which has not been given.
The legal steps come after Abramovich failed to meet a 90-day deadline set by the government for transferring the proceeds following his forced Chelsea sale in 2022. The sale was compelled by sanctions imposed amid Russia’s full-scale invasion of Ukraine, targeting oligarchs allegedly linked to Vladimir Putin.
A government spokesperson stated, “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.” Prime Minister Sir Keir Starmer had earlier warned that failure to comply would result in legal action.
Dispute Over Fund Allocation and Amount
The government insists on receiving the full £2.5 billion from the consortium that purchased Chelsea, which includes Behdad Eghbali and Todd Boehly. However, recent accounts from Fordstam, Chelsea’s parent company during Abramovich’s ownership, show only an intention to allocate £987 million to a charitable foundation once loans are repaid.
Abramovich’s Jersey-based company, Camberley International Investments, is owed £1.429 billion from an interest-free loan used to fund Chelsea’s operations since 2003. The government is firm that the funds must reach the most vulnerable in Ukraine and rejects any proposal that might allow the money to indirectly support Russia.
Ongoing Legal and Financial Controversies
Abramovich, 59, has remained out of public view since the Chelsea sale. His legal team has not responded to recent government communications or media requests for comment. Additionally, the Premier League has found financial irregularities involving Chelsea during Abramovich’s tenure, with over £47 million in unregistered payments related to player transfers.
While the Premier League imposed a record £10.75 million fine and a suspended transfer ban on Chelsea’s current ownership, it stopped short of points deductions. The irregularities span years where the club won multiple major titles, though no players were implicated in wrongdoing.
The sanctions originally imposed by Boris Johnson’s Conservative government remain in place under the Labour administration, maintaining pressure on Abramovich to release the frozen sale proceeds for Ukraine relief.
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