UK issues warning to take legal actions against Russian tycoon

(MENAFN) The UK government has warned Russian billionaire Roman Abramovich that it may initiate legal proceedings if he does not authorize the transfer of £2.5 billion ($3.4 billion) from the sale of Chelsea Football Club to support Ukraine. The warning was issued in a joint statement on Monday by Chancellor Rachel Reeves and Foreign Secretary David Lammy.

Abramovich sold Chelsea to a U.S.-led consortium in May 2022, shortly after the Ukraine conflict escalated and he was sanctioned by the UK for alleged ties to the Kremlin—claims he denies. Though Abramovich originally proposed using the funds to help victims on both sides of the conflict, British authorities insist the money be used exclusively for Ukrainian humanitarian aid, rejecting the billionaire’s broader approach.

Reeves and Lammy said the government is committed to ensuring the money benefits those affected in Ukraine, expressing frustration over the three-year delay in reaching an agreement. “While we remain open to negotiations, we are ready to go to court if necessary to ensure this money reaches those in need in Ukraine,” their statement read.

The £2.5 billion remains frozen in a UK bank account and cannot be moved abroad without a license from the Foreign Office. Although Abramovich is sanctioned and unable to access the funds, he remains their legal owner and must consent to their use.

According to The Guardian, ongoing talks between UK officials and Abramovich’s legal team have failed to resolve a “fundamental disagreement” about how the funds should be distributed. Government sources emphasized their willingness to take legal steps if required.

Abramovich’s representatives have not commented publicly on the matter.

Following the onset of the Ukraine war in 2022, Western nations imposed sweeping sanctions on Russia, freezing over $300 billion in assets and targeting individuals linked to the Kremlin. Many Western leaders have proposed using these frozen assets to fund Ukraine’s reconstruction, a move strongly condemned by Moscow as “theft.” Critics argue such actions violate international law and could erode global trust in Western financial institutions.

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