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Nearly three years after the high-profile sale of Chelsea Football Club, the £2.5 billion ($3.2 billion) intended to aid victims of the war in Ukraine remains frozen in a UK bank account, mired in legal and bureaucratic disputes.
In May 2022, Russian billionaire Roman Abramovich sold Chelsea FC to a consortium led by American investor Todd Boehly and private equity firm Clearlake Capital. At the time of the sale, Abramovich announced that all net proceeds would be donated to a foundation benefiting “all victims of the war in Ukraine.” However, the funds have yet to be disbursed, leading to growing frustration among UK lawmakers and international observers.
Current Impasse
The delay in releasing the funds stems from disagreements between Abramovich’s representatives and the UK government over the allocation and management of the money. The government insists that the funds be used exclusively for humanitarian purposes within Ukraine, while Abramovich’s camp advocates for a broader distribution to all victims affected by the war, potentially including those outside Ukraine.
Daniel Drake, Deputy Director of the Sanctions Taskforce in the Foreign, Commonwealth and Development Office, highlighted the stalemate, stating: “We wouldn’t want to speculate… I think there’s a disagreement between those involved in running this fund and the government.”
Government’s Stance and Potential Legal Action
UK Foreign Secretary David Lammy has expressed frustration over the prolonged delay and has committed to taking decisive action, which could include initiating legal proceedings to unlock the funds. Lammy emphasized the urgency of the situation, noting that while litigation is a last resort due to potential time constraints, it remains a viable option to resolve the deadlock.
The UK government maintains that the funds should be directed exclusively to humanitarian efforts within Ukraine. A proposed foundation, involving former UNICEF UK chief executive Mike Penrose, aims to support war refugees. However, the foundation has yet to be established, contributing to the ongoing impasse.
Parliamentary Concerns
Members of Parliament have voiced their dissatisfaction with the prolonged inaction. Lord Peter Ricketts, chair of the European Affairs Committee, remarked: “We are all completely baffled and frustrated that it has taken so long.” The committee’s report criticized both Abramovich and the government for the lack of clarity and urgency in resolving the matter.
International Implications
The situation underscores the broader challenges Western nations face in repurposing frozen Russian assets to support Ukraine. The Chelsea FC funds have become a focal point in discussions about leveraging sanctioned assets for humanitarian aid. Tom Keatinge, director of the Centre for Financial Crime and Security Studies at the Royal United Services Institute, commented that the case serves as a “challenge that we face in trying to use frozen assets for the benefit of Ukraine.”
Next Steps
As the deadlock persists, the UK government is exploring all avenues to expedite the release of the funds. The potential legal battle could set a precedent for handling similar cases in the future, especially concerning the allocation of frozen assets linked to sanctioned individuals. The international community continues to watch closely, emphasizing the importance of ensuring that pledged funds reach those affected by the ongoing conflict in Ukraine.
