Roman Abramovich is facing possible legal action by the UK government over a delay in releasing funds to help Ukraine war victims. Critics argue that Abramovich must immediately release £2.5 billion from the sale of Chelsea FC to help victims of the Ukraine war. The Russian billionaire, who was sanctioned in the UK shortly before the Chelsea sale in 2022, missed the government’s latest deadline to transfer the money on Tuesday this week.
Roman Abramovich was forced to sell Chelsea FC in May 2022 after being sanctioned following Russia's invasion of Ukraine. Abramovich pledged to donate money to victims of the conflict in Ukraine when he sold the club, but it remains held by his private company Fordstam Ltd. He promised to give the proceeds from the Chelsea sale to Ukraine, but on his terms.
Four years after the sale, the funds remain frozen amid a dispute between Roman Abramovich and the UK government. In December, the government issued a licence to permit the transfer of over £2.5 billion in proceeds from Chelsea FC’s sale into a foundation for humanitarian purposes in Ukraine. The government has written to Abramovich’s legal team following the missed deadline and is prepared to go to court if necessary.
Financial complexities have emerged that reduce the amount potentially available for charity. The company’s latest accounts say £150 million of this is being held by Chelsea FC’s new owners, BlueCo 22, until next year when it will be transferred to Fordstam. It also says £41.6 million was spent on transaction fees, meaning Fordstam received £2.35 billion initially from the sale in 2022. Fordstam also claims in its accounts that it owes £1.43 billion loaned to it by another of Abramovich’s companies called Camberley International Investments Limited. Fordstam therefore states that it only intends to transfer the remaining net gain on sale of £987 million to charitable causes.
This reduced donation plan contradicts Abramovich's earlier promises. The government has said its licence issued to Abramovich in December last year permits the full sale proceeds, £2.54 billion according to Fordstam’s accounts, to a new foundation. This is despite Abramovich claiming in 2022 that all net proceeds from the sale will be donated and that he would not ask for loans to be repaid.
The release of funds risks being further delayed by a court battle in Jersey, where £5.3 billion of Roman Abramovich's fortune has been frozen since 2022. Camberley International Investments is subject to a criminal investigation by the Attorney General of Jersey into whether certain assets amount to the proceeds of crime.
Legal developments in Jersey have seen Abramovich win a court order for the Jersey government to pay some of his court costs. Tory frontbencher Lord Wolfson is acting on behalf of Roman Abramovich in the Jersey case.
I am writing to urge you to immediately release the money from the sale of Chelsea FC in 2022. Ukraine is in desperate humanitarian need as the illegal and senseless war continues. The more than £2.5 billion that you agreed with the UK government would be spent on supporting victims in Ukraine is needed urgently.
Political reactions have been critical of the delay. Joe Powell, a corruption campaigner and Labour MP, has written to Roman Abramovich accusing him of using an unacceptable 'delaying tactic'. Charity sector bodies bemoaned the delay in releasing the money for charitable causes.
Roman Abramovich made his billions in the post-Soviet Russian era and has been said to be an ally to Vladimir Putin, which he has denied. While the suffering in Ukraine goes on, Roman Abramovich continues to live an extravagant lifestyle.
The last reports suggested Roman Abramovich was in Turkey.
This could create one of the 10 largest charities in the UK by assets, if it were registered in this country.
Abramovich’s business associate and former Chelsea FC director Eugene Tenenbaum, who was also sanctioned in 2022, serves as a common director of both Fordstam and Camberley International Investments.
The implications of this dispute could lead to a protracted legal battle that further delays aid to Ukraine. The UK government's willingness to go to court indicates a serious commitment to enforcing Abramovich's pledge, but the process may take months or even years to resolve.
Several unknowns persist in this case. How the court battle in Jersey over frozen assets will impact the release of the Chelsea sale funds for Ukraine remains uncertain, as does the current status of the criminal investigation by the Attorney General of Jersey into Camberley International Investments.