Labour ministers have yet to hold talks with key figures involved in unlocking the £2.5bn promised for Ukraine after Roman Abramovich’s sale of Chelsea football club. Abramovich sold Chelsea in 2022, following the UK government’s sanctions against him over Russia’s invasion of Ukraine. The £2.5bn raised from the sale was intended for humanitarian causes related to the Ukraine war but remains frozen in a UK bank account. Labour ministers are facing mounting pressure to engage with Abramovich’s representatives or the foundation set up to oversee the funds.
The Foreign, Commonwealth and Development Office (FCDO) stated that its officials are currently in discussions with Abramovich’s representatives. However, multiple sources revealed that there have been no meetings between Labour ministers and the foundation’s members since the last general election. Sources close to the foundation expressed the need for a political decision by a minister to negotiate and finalize an agreement that could break the impasse.
Abramovich’s representatives have refrained from comment, but individuals familiar with the situation acknowledged little progress has been made in releasing the funds under the four prime ministers who have been in power since the club’s sale. The urgency of the issue increased when Prime Minister Sir Keir Starmer redirected part of the UK’s overseas aid budget to defense, with £282m allocated to aid for Ukraine in 2024/25. The £2.5bn, along with the accrued interest, could help offset the funds diverted from the aid budget.
The delay revolves around a disagreement between the UK government and Abramovich’s lawyers. Despite Abramovich being unable to access the £2.5bn due to UK sanctions, the money legally belongs to him. His lawyers have insisted the funds be used for all war victims in Ukraine, including those outside the country, while the UK government argues the funds should strictly support humanitarian efforts within Ukraine.
Portugal’s involvement in the matter stems from Abramovich’s citizenship and EU sanctions against him. Portuguese authorities exempted the Chelsea funds from sanctions, permitting their use solely for humanitarian purposes in Ukraine. Foundation members, led by Mike Penrose and Jan Egeland, met with former Foreign Secretary David Cameron and his deputy Andrew Mitchell, hinting at a potential breakthrough. However, no resolution was reached before the last general election, and no ministerial meetings have transpired since Labour assumed office.
The foundation has a detailed plan awaiting implementation once the funds are released, including programs to aid Ukrainian soldiers’ orphans and addressing healthcare, housing, and education needs of war refugees. A House of Lords committee report criticized the government’s inaction in releasing the funds to support Ukraine. Reports suggest ministers are considering legal action against Abramovich to unfreeze the funds, while western nations are using interest from frozen Russian assets to aid Ukraine.
An FCDO spokesperson emphasized the government’s commitment to swiftly channeling the Chelsea sale proceeds to Ukrainian humanitarian causes. The funds are currently frozen in a UK bank account as the establishment of an independent foundation to manage and distribute the money is in progress. UK officials continue discussions with Abramovich’s representatives, experts, and international partners, intensifying efforts to reach a resolution and release the funds promptly.
