The Charity Commission is prepared to receive an application this week for a new foundation to distribute up to £2.5bn generated by the sale of Chelsea football club in 2022.
Former Chelsea FC owner Roman Abramovich, sanctioned over ties to Russian president Vladimir Putin after the invasion of Ukraine in 2022, pledged to donate the money to victims of that conflict but has yet to release the funds despite pressure from the government.
However, on Wednesday, the Times reported that a submission to the commission was being prepared for a charity called the Foundation for Victims of Conflict, to be headed by former UNICEF UK executive director Mike Penrose.
Penrose, who has been working on unlocking the Chelsea FC sale funds held in Abramovich’s private company Fordstam Ltd since 2022, told the newspaper: “The application will be submitted this week.
“We are hopeful that, once the relevant legal matters are resolved, the foundation will be in a position to receive a donation.”
The foundation’s stated objectives will be to provide “humanitarian assistance to people in need anywhere in the world who are victims of conflict” by giving grants or other support to relief organisations, the Times reported.
Meanwhile, a spokesman for Abramovich told the newspaper: “Our understanding is that a foundation is in the process of being registered, which we welcome.
“Mr Abramovich maintains his intention to donate funds to humanitarian causes once the relevant legal obstacles are resolved.”
A spokesperson for the commission told Civil Society that it had not yet received an application but that it “continues to stand ready to receive and review an application to register this foundation”.
Concern over charity’s scope
The government pledged to take further action last month to release the Chelsea FC sale money after Abramovich missed “his last chance” to donate the money.
In response to the charity potentially being registered, a spokesperson for the Foreign, Commonwealth & Development Office (FCDO) said it was still taking steps to ensure Abramovich’s 2022 pledge is met.
FCDO emphasised the point that Abramovich originally pledged the money to victims of the war in Ukraine specifically rather than those affected by other global conflicts.
“We have been clear from the start that the full proceeds of the sale of Chelsea FC must be used for humanitarian causes in Ukraine,” they said.
“Our absolute priority remains ensuring the funds reach the most vulnerable in Ukraine who have endured over four years of relentless suffering.”
In 2022, Abramovich said: “I have instructed my team to set up a charitable foundation where all net proceeds from the sale will be donated.
“The foundation will be for the benefit of all victims of the war in Ukraine.”
Fordstam’s latest accounts detailed several reasons for the funds not yet being released for charitable causes, including an ongoing criminal investigation in Jersey.
Sector urges release of funds
Charity sector leaders spoke of their frustration over a years-long effort to free up the funding for charitable causes.
Alison Griffin, Save the Children UK head of conflict and humanitarian campaigns, urged for a solution to be found, but said that the money must go to Ukrainian war victims.
Griffin said: “We urge all parties to put aside their differences and focus on identifying a solution for those who need the money the most, including children whose childhoods have been turned upside down by this conflict.
“Anything else would be a betrayal of those affected by the war, wherever they are in the world.”
Dan Corry, chief economist at the Future Governance Forum, said the affair has been going on for too long while Ukraine war victims needed help.
Corry said: “The situation needs to be unlocked one way or another, but not via unilateral action that just leads us into further delay.
“Let's hope all parties can work together so we can move forward soon.”
Romilly Greenhill, chief executive of UK NGO network Bond, said: “We reiterate our call on all parties to unlock these funds, so that they can be rapidly transferred to help people around the world.
“The back and forth on the release of the Chelsea FC funds has now gone on for almost four years – with much-needed money, promised to victims of war, tied up as people worldwide continue to suffer.”
