Inside the £2.5 Billion Legal Standoff Between Former Chelsea Owner and the UK Government

Former Chelsea owner Roman Abramovich is in a legal stand off with the UK government. (Credit: Imago)

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Former Chelsea owner Roman Abramovich is in a legal stand off with the UK government. (Credit: Imago)

Inside the £2.5 Billion Legal Standoff Between Former Chelsea Owner and the UK Government

Stephen Awino 11:23 - 03.06.2025

The UK government is prepared to take legal action against former Chelsea owner Roman Abramovich over the usage of the £2.5bn from the club's sale.

The UK government has threatened legal action against Roman Abramovich, the former owner of Chelsea Football Club, in a bid to ensure that the £2.5 billion proceeds from the sale of the club are directed exclusively toward humanitarian aid in Ukraine.

The funds, currently frozen in a UK bank account, have remained untouched since Abramovich was sanctioned following Russia’s full-scale invasion of Ukraine in 2022.

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Legal Standoff Over £2.5bn in Frozen Funds

Chelsea
Former Chelsea owner Roman Abramovich. (Credit: Imago)

Abramovich, a Russian billionaire with alleged, but denied, ties to President Vladimir Putin, was allowed to sell Chelsea under a special licence on the condition that he would not personally benefit from the proceeds.

However, disagreements over how the funds should be used have stalled their release for more than two years.

While the UK government insists that the proceeds must support humanitarian relief efforts strictly within Ukraine, Abramovich has maintained that the money should go to "all victims of the war in Ukraine," a definition that potentially includes Russians affected by the conflict.

This broader interpretation has led to a stalemate between his legal team and British authorities.

In a joint statement, Chancellor Rachel Reeves and Foreign Secretary David Lammy expressed frustration with the delay as quoted by BBC Sports.

"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."

They added that while the "door for negotiations will remain open," they are prepared to escalate the matter to the courts if needed, emphasizing the urgency of delivering aid to those suffering in Ukraine.

Despite the sanctions, Abramovich still legally owns the proceeds of the Chelsea sale, though he is barred from accessing them.

When announcing the sale in 2022, he pledged to donate the funds via a foundation benefiting all victims of the war, a stance that continues to clash with the UK government's policy of restricting aid strictly to Ukraine.

As tensions continue over the fate of the funds, the humanitarian crisis in Ukraine remains dire, adding pressure on both sides to resolve the dispute swiftly.

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