Sir Keir Starmer has ordered Roman Abramovich to transfer the £2.5 billion proceeds from the sale of Chelsea FC to Ukraine or face legal action.
The PM said the “clock is ticking” for the former football club owner to pay up, announcing ministers have issued a licence allowing the proceeds from the sale of Chelsea to be transferred to a new foundation for humanitarian causes in Ukraine.
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He told MPs on Wednesday: “My message to Abramovich is this: the clock is ticking.
“Honour 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.”
Abramovich sold the club in May 2022 after he was sanctioned following Vladimir Putin’s invasion earlier that year.
The oligarch had pledged to donate the proceeds from the sale to the people of Ukraine, but he has so far failed to reach an agreement with the government on a way forward and the funds remain frozen.
Wednesday’s decision to grant a licence for the transfer is an effort to force Abramovich to fulfil his promise before the government resorts to legal action.
Starmer made the announcement during Prime Minister’s Questions on Wednesday. Credit: House of Commons
The government previously raised the possibility of legal action in June, when Chancellor Rachel Reeves and then-foreign secretary David Lammy said they were “frustrated” by the failure to reach an agreement with Abramovich.
On Wednesday, Reeves said it was “unacceptable” that the money remained frozen in a UK bank and said ministers were “prepared to do what is necessary” to ensure the funds reach Ukraine.
The Treasury said ministers would consider any proposal from Abramovich to voluntarily transfer the money to Ukraine.
Under the new licence, the proceeds must go to humanitarian causes in Ukraine, while any future gains can be spent more broadly on victims of conflict around the world.
Foreign Secretary Yvette Cooper said: “This money was promised to Ukraine over three years ago. It is time Roman Abramovich does the right thing, but if he won’t we will act.
“That’s why the licence has been issued. It is time this money was used to rebuild the lives of people who’ve seen devastation as a result of Putin’s illegal war.”
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