Starmer Demands Abramovich to Settle Obligations or Face Legal Action

The Prime Minister has issued a stark ultimatum to Russian oligarch Roman Abramovich, urging him to promptly distribute funds designated for victims of the Ukraine conflict or prepare for legal consequences.

Abramovich, who previously owned Chelsea Football Club, had committed in 2022 to allocate the £2.5 billion earned from the club’s sale for the benefit of those affected by Russia’s invasion of Ukraine.

However, the release of these funds has been stalled as they remain frozen in a UK bank account, amid disputes regarding their intended use.

Urgent Message from Starmer

During a session in the Commons on Wednesday, Sir Keir Starmer made it clear: “My message to Abramovich is straightforward: the clock is ticking.”

The government advocates for the funds to be directed towards humanitarian assistance, while Abramovich contends that the money should support “all victims of the war,” which could potentially include Russian citizens.

Despite being unable to access the funds due to UK sanctions, the proceeds from the sale of Chelsea still legally belong to Abramovich.

Government’s Next Steps

Updating members of Parliament, Sir Keir highlighted that the UK has issued a license permitting the transfer of the £2.5 billion that has been frozen since 2022.

He cautioned Abramovich, saying, “Fulfill your promise and pay up now, or we are prepared to take legal action to ensure that every penny assists those whose lives have been shattered by Putin’s unlawful invasion.”

Foreign Secretary Yvette Cooper echoed this sentiment in an interview, insisting that Abramovich must honor his commitment and release the funds.

Potential Legal Complications

When questioned about the possibility of a prolonged legal dispute, Cooper urged Abramovich to refrain from pursuing further court actions, although she confirmed that the government would initiate legal proceedings if he remains unresponsive.

Abramovich’s representatives have opted not to comment on the matter.

The Treasury clarified that, according to the license’s stipulations, the funds must be allocated solely to humanitarian initiatives in Ukraine and cannot be utilized by Abramovich or any other sanctioned individuals.

Previous Threats of Legal Action

The government initially indicated a willingness to sue Abramovich back in June.

Chancellor Rachel Reeves expressed concern, stating, “It is unacceptable for over £2.5 billion owed to the Ukrainian populace to remain frozen in a UK bank account.”

Abramovich, a billionaire who amassed his wealth in the oil and gas sector, was granted a special license to sell Chelsea following Russia’s invasion, contingent on proving that he would not benefit from the sale.

He has been accused of having close connections to Russian President Vladimir Putin, an allegation he has denied.

Reports indicate that Abramovich has a 90-day window to take action before the UK considers initiating legal proceedings.

Meanwhile, EU leaders are expected to evaluate proposals aimed at utilizing proceeds from frozen Russian assets to support Ukraine’s substantial budget and defense needs, a move that Russia has strongly opposed.