The government has expressed frustration over its attempts to release billions of pounds generated from the sale of Chelsea FC in 2022 for charitable causes, and is now threatening legal action.
In a joint statement this week, chancellor Rachel Reeves and foreign secretary David Lammy said the government remained determined to see the around £2.5bn of proceeds reach humanitarian causes in Ukraine and was “fully prepared to pursue this through the courts if required”.
In March 2022, Russian billionaire and former Chelsea FC owner Roman Abramovich announced that he was selling the football club after being sanctioned by the UK government, and pledged to donate the proceeds to a new foundation set up to help victims of the war in Ukraine.
However, the money, which could create the second wealthiest charity in Britain, remains frozen in a UK bank account.
The government, both before and after last year’s general election, has repeatedly stated its aim to see the funds released, so far to no avail.
This week, following a question in parliament, Reeves and Lammy said the government would now consider legal action.
They 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.”
Government action welcomed
Dan Corry, chief economist at the Future Governance Forum think tank, welcomed the government’s latest statement.
He said: “The money from the Abramovich sale of Chelsea has been doing no good to anyone over the last few years so it is good to see some action now to try and bring it to a head.
“A negotiated settlement that gets the money to humanitarian causes in Ukraine fast would be the best outcome but if legal action is the only way forward then it must be right to get moving on it.”
Meanwhile, James Somerville, head of policy at think tank NPC, said: “It’s good that the government is signalling that they won’t give up on getting these funds to humanitarian causes in Ukraine as promised.
“But the ongoing focus on these funds highlights the need for a long-term, sustainable approach to funding foreign aid.
“As we approach the spending review, we hope to see the shift continue towards meaningful partnership between government and the impact sector as a whole, but the sector needs a clear update on when these crucial funds might be available.”
Romilly Greenhill, CEO of Bond said: “After three years of delays, it’s encouraging to see the government taking steps to ensure that proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine, but it’s vital that these funds reach those in need not only in Ukraine, but also in other lower-income countries affected by the wider impacts of the war and conflict.
“This money is desperately needed now. We urge the government to prevent further lengthy delays that will keep the funds locked up for many more years to come, while people continue to suffer.
“In the context of the UK aid cuts, huge humanitarian needs in Ukraine and around the world, it's crucial that the government does whatever is needed to release these funds as soon as possible.”
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