UK Prime Minister Keir Starmer has issued a strong message to Russian oligarch Roman Abramovich, urging him to fulfill his commitment to donate the proceeds from the sale of Chelsea Football Club to humanitarian efforts in Ukraine. During a session with Members of Parliament on Wednesday, Starmer emphasized that “the clock is ticking” for Abramovich to make good on his pledge, stating that the UK Government has granted a license for these funds to be transferred to a foundation dedicated to humanitarian causes in Ukraine.
Starmer’s remarks come in the context of Abramovich’s sale of Chelsea, which took place in May 2022, following sanctions imposed on him due to Vladimir Putin‘s invasion of Ukraine earlier that year. Despite his assurances to donate the proceeds, the funds have remained frozen as Abramovich and the UK Government have struggled to reach an agreement on how to proceed.
Government’s License and Legal Action Considerations
The UK Government’s newly issued license aims to facilitate the transfer of the sale proceeds to support humanitarian efforts in Ukraine. Starmer called on Abramovich to act swiftly, stating, “Honor the commitment you made and pay up now, and if you don’t, we are prepared to go to court so every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
Downing Street has indicated that Abramovich has opposed the Government’s requirement that the funds be utilized exclusively for Ukraine. This has led to frustration among government officials, with Chancellor Rachel Reeves and former Foreign Secretary David Lammy expressing their dissatisfaction in June over the lack of progress in negotiations. Reeves reiterated this sentiment on Wednesday, describing it as “unacceptable” that the funds remain locked in a UK bank while the crisis in Ukraine continues.
The Government’s decision to grant the license is seen as a critical step to compel Abramovich to fulfill his promise, while also indicating that legal action remains a viable option should he fail to comply. Although the Government expects action from Abramovich within the next few months, no definitive deadline has been established.
Future of the Funds and Broader Implications
The Treasury has stated that it is open to considering any proposals from Abramovich for a voluntary transfer of the funds to Ukraine. However, it has refrained from detailing what legal mechanisms might be employed to enforce the transfer if necessary. Under the terms of the new license, the proceeds must be allocated to humanitarian causes in Ukraine, while any potential future gains from the sale can be used more broadly to assist victims of conflict worldwide.
As the situation develops, the UK Government remains committed to ensuring that the funds reach those in need in Ukraine. The ongoing challenge of navigating the complexities of international sanctions and humanitarian aid will continue to play a significant role in how this issue unfolds.
