UK gives Abramovich final warning to transfer £2.5bn to Ukraine fund | Roman Abramovich
Britain gives final warning to Roman Abramovich over releasing £2.5bn from oligarch’s sale of Chelsea FC to be given to Ukraine; He told the billionaire to release the money within 90 days or go to court.
Keir Starmer told the House of Commons that funds from Abramovich, who is subject to UK sanctions, would be converted into a new foundation for humanitarian purposes in Ukraine and that granting a license for the transfer was the last chance Abramovich would have to comply with.
The move comes on the eve of a key EU summit where leaders will be called on to agree to use Russia’s frozen assets to provide a 90 billion euro loan to Ukraine.
“The clock is ticking for Roman Abramovich to fulfill the promise he made when Chelsea FC was sold and transfer £2.5bn to a humanitarian cause for Ukraine,” Starmer said. “This government is ready to enforce this through the courts so that every penny reaches those whose lives have been shattered by Putin’s illegal war.”
Russian billionaire Sold Chelsea in 2022 He is under pressure from the British government after Russia invaded Ukraine.
Abramovich was given a license from the UK government to sell Chelsea as long as the money was spent supporting victims of the Ukraine war. The proceeds were deposited in a UK bank account controlled by Abramovich’s company, Fordstam.
The money has since been frozen as negotiations with Abramovich remained deadlocked over whether it would be spent only in Ukraine or outside the country as well.
Abramovich is understood to have been given three months before the government took legal action, but the Liberal Democrats have called for the deadline to be shortened, saying the billionaire should only be given until the end of the month to transfer the funds.
The billionaire said he wanted the money to go to “all victims of the war in Ukraine” and demanded that Russians also benefit from the proceeds.
Abramovich needs to take the necessary steps to establish the foundation and arrange the transfer in accordance with the license. The Prime Minister’s spokesman is upset: “There are still a few steps to be taken before we get to that point in terms of foundations.”
“The license makes the transfer possible. Mr. Abramovich needs to take the necessary steps to establish the infrastructure and organize the transfer in accordance with the license. In terms of establishing this, it is a few steps away. This is the first step in the process.”
Announcing the new license, chancellor Rachel Reeves said: “It is unacceptable that more than £2.5bn of debt owed to the Ukrainian people is allowed to remain frozen in a UK bank account. It is time for Roman Abramovich to pay. If he does not act, then we are prepared to do whatever is necessary to ensure the money reaches the Ukrainian people.”
Ministers emphasized that they have been trying to reach an agreement with Abramovich and cooperate on the transfer of funds for many years. Starmer said the government was ready to take Abramovich to court to access the money.
The Guardian reported in March that ministers believed legal action was ultimately required. The government said it would consider “any offer” for Abramovich to voluntarily donate the funds to Ukraine.
Under the terms of the license, proceeds must go to humanitarian causes in Ukraine, but future earnings can be spent more broadly on victims of conflict around the world. Funds may not benefit Abramovich or other sanctioned individuals.
The move came after Ukrainian President Volodymyr Zelenskyy said proposals negotiated with US officials on a peace deal to end Russia’s war in Ukraine could be completed soon.
US officials said Monday that they had resolved “90%” of the problematic issues between Russia and Ukraine after two days of talks in Berlin, but Russian officials were not there.
Talks are continuing this week among European leaders on a separate plan to use frozen Russian assets to finance Ukraine in coming years, with the leaders’ meeting scheduled to begin on Thursday.
Most of the assets (€185 billion) are held in the Euroclear central securities depository in Brussels. Belgium has said it is not prepared to release any of the funds without guarantees that it will not be held responsible for the money.
Moscow said using the assets would be theft and threatened to seize assets of European private investors in Russia. The plans discussed mean the EU will provide an initial loan of 90 billion euros to Ukraine using money from Euroclear, but Russia’s claim to the funds will remain unchanged. Ukraine will repay the money only if Russia agrees to pay compensation.
