The £2.5billion ($3bn; €3bn) generated from the sale of Chelsea Football Club remains frozen in a UK bank account — three years on from when it was announced it would be used to support humanitarian causes following the Russian invasion of Ukraine.
Roman Abramovich was forced by the UK government to sell the Premier League club after the invasion in February 2022 and on March 2 of that year released a statement saying that “all net proceeds from the sale will be donated for the benefit of all victims of the war in Ukraine”.
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The government, then led by Conservative prime minister Boris Johnson, described Abramovich as a “pro-Kremlin oligarch” and sanctioned him before declaring that the sale of Chelsea could only be granted if Abramovich would not personally benefit from the transaction.
More than two and a half years after agreeing to sell the club to Clearlake Capital and Todd Boehly for £2.5bn in May 2022, the money remains untouched.
The Charity Commission, the organisation that registers and regulates charities in England and Wales, has confirmed to The Athletic that it is yet to receive an application for a foundation to be created.
The discussion around Russia’s war in Ukraine has escalated in recent weeks following comments made by U.S. President Donald Trump. Trump claimed Ukraine was responsible for starting the war, and also called Ukraine president Volodymyr Zelenskyy a “dictator without elections” via his Truth Social social media platform. On Friday, talks between Trump and Zelenskyy ended in an extraordinary public row at the White House.
Last night, the UK Government announced a bilateral agreement to send Ukraine more than £2billion of new funding, which will be paid back using profits from sanctioned Russian sovereign assets. HM Treasury sources, speaking on condition of anonymity due to the sensitive nature of the matter, have told The Athletic this is unrelated to the proceeds from the sale of Chelsea Football Club.
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Before Chelsea’s game at Stamford Bridge to Southampton on Tuesday night, fans protested outside against Todd Boehly and Clearlake Capital’s ownership of the club, with them also singing positively about Abramovich.
The UK’s Foreign, Commonwealth and Development Office (FCDO) has told The Athletic that it is still in talks with Abramovich’s representatives.
An FCDO spokesperson said: “This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible.
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“The proceeds are currently frozen in a UK bank account while a new independent foundation is established to manage and distribute the money.
“UK officials continue to hold discussions with Mr Abramovich’s representatives, experts and international partners, and we will double down on our efforts to reach a resolution.”
Abramovich was forced to sell the club in May 2022 (Michael Regan – FIFA/FIFA via Getty Images)
The Athletic has previously reported that a key reason for the delay is down to a disagreement in regards to how the funds will be distributed.
Abramovich wants the proceeds to benefit all the victims of the war, including Russian soldiers, as well as wanting it to go towards other charitable causes outside of Ukraine.
The UK government, however, which is now led by Labour’s Sir Keir Starmer, has not changed its position from 2022 and maintains that the £2.5bn is ring-fenced solely for humanitarian causes in Ukraine.
Emily Thornberry, a Labour MP and chair of the Foreign Affairs Committee, which examines the policy, administration and expenditure of the FCDO, criticised the situation when her office was approached by The Athletic.
“It is ridiculous that £2.5bn is being withheld from the victims of the war in Ukraine whilst Abramovich bickers about what he has agreed to do,” Thornberry said.
On February 11, Andrew Mitchell, a Conservative MP, submitted a question to David Lammy, the Secretary of State at the FCDO, asking whether “he plans to provide proceeds from the sale of Chelsea Football Club to humanitarian causes in Ukraine in the first half of 2025”.
Stephen Doughty, the Minister of State for Europe, North America and Overseas Territories, responded by saying “they are not government funds” and that discussions are also being held with “experts and international partners” as they try to reach a resolution.
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Mike Penrose, the former chief executive of UNICEF UK, was appointed to set up an organisation for the money to be distributed, but until an agreement is reached between the UK government and Abramovich’s representatives on where the money will go, there will not be a foundation.
“Every bit of money — no matter how much or how little — is crucial to support Ukraine at this moment,” Karol Swiacki, the CEO and founder of charity Ukraine Relief, tells The Athletic.
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“The nation is suffering. Over one million people at this moment have no power. There is little drinking water and no gas in some areas; it is a total disaster.
“There is one side and one aggressor: Russia is attacking and killing people in Ukraine. The war could be stopped today if a decision was made in Moscow to stop it and withdraw their soldiers. There would be no more dying and no more conflict.
“Nobody here wants to attack Russia. This is all about Russia. Until this happens, there is only one side that should be supported — and that is Ukraine.”
A representative for Abramovich has not responded to a request for comment.
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(Top photo: Paul Gilham/Getty Images)
