Abramovich hits out at UK government over frozen £2.3bn Chelsea proceeds
Former Chelsea owner Roman Abramovich has criticised the government over moves that have “paralysed” his £2.3bn windfall from the sale of the Premier League club.
Following the invasion of Ukraine, the Russian billionaire sold the Stamford Bridge club to a consortium fronted by American Todd Boehly, with the proceeds placed in a frozen bank account padlocked by the British government. Abramovich was accused of being too close to Russian President Vladimir Putin to avoid sanctions, something he denies.
Abramovich, the former governor of Chukotka Autonomous Okrug who made his fortune in oil and gas, had pledged that the “net proceeds” of the sale would go to all victims of the war – interpreted in some quarters that Russians could also benefit – while successive UK governments have called on the cash to only be spent within the borders of Ukraine.
What can Abramovich do?
The government threatened to drag Abramovich through the courts to unlock the money but this has not happened, and overdue accounts from former Chelsea parent company Fordstam Ltd stated the donation would be made “after allowing for other balance sheet items”, which could diminish the £2.3bn sum to around £950m.
“Due to sanctions and a range of other governmental actions, Camberley International Investments Limited, as well as other structures with any form of historic link to Mr Abramovich, have been effectively paralysed since 2022,” a statement from Abramovich’s spokesperson said.
“Consequently, no actions in relation to the frozen funds are possible to make without the government’s approval. The UK government has not proposed any legal solution to this current situation.”
Court time?
To unlock the funds the government previously mulled plans to take Abramovich – who has Russian, Portuguese and Israeli citizenship – to court. At the time a joint statement from Chancellor Rachel Reeves and then foreign secretary David Lammy said: “While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required.
“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.”
The frozen assets legally belong to Abramovich but a House of Lords report on the lack of progress in the case said: “This impasse reflects badly on both Mr Abramovich and the government, which ought to have pushed for a more binding [initial] commitment.”
Abramovich’s association with Chelsea has stretched to over two decades, with his initial purchase of the Stamford Bridge club taking place in 2003.