UK government urged to sue Abramovich as £2.6bn Chelsea sale funds sit frozen

More than £2.6 billion in proceeds from Roman Abramovich’s forced sale of Chelsea Football Club remains sitting in a UK bank account, with the Liberal Democrats demanding the government pursue legal action against the sanctioned oligarch to break the deadlock.

Foreign Secretary Ed Miliband was challenged over the stalled funds at Foreign Office questions in the Commons on Tuesday by Calum Miller, the Liberal Democrats’ foreign affairs spokesman. Miliband acknowledged the government was “absolutely determined to take action” but declined to comment directly on the Chelsea proceeds, citing ongoing legal processes.

Abramovich was sanctioned by Britain over his ties to Vladimir Putin’s Russian regime and was forced to sell Chelsea in May 2022. The government issued a licence last December giving Abramovich a 90-day deadline to transfer the funds into a new foundation for humanitarian purposes in Ukraine. Foreign Office minister Uma Kumaran confirmed in a written response to Miller that “no such transfer has yet been made.”

Miller did not hold back after the Commons exchange. “It is completely unacceptable that over £2.6 billion meant for Ukrainian war victims continues to sit unused in a British bank account,” he said. “The government say they are ‘absolutely determined’ to resolve this, but its refusal to set a firm deadline tells a very different story. Empty promises mean nothing to the people of Ukraine who are enduring unimaginable hardship today, while Roman Abramovich’s lawyers kick the can down the road. The foreign secretary must stop dragging his feet and take Abramovich to court.”

Miliband also used the session to signal a broader push on frozen Russian sovereign assets, saying the government would urge EU partners to move on those funds in the coming months as part of efforts to sustain support for Ukraine through the winter.