The UK Government has threatened to sue former Chelsea Football Club owner Roman Abramovich over the £2.5billion proceeds from the club’s sale.
The proceeds have been frozen in a UK bank account for three years, with Mr Abramovich sanctioned after Russia’s full-scale invasion of Ukraine in February 2022.
The UK government wants to ensure the money from the club’s sale goes to Ukraine, but Mr Abramovich wants it to go to “all victims of the war in Ukraine”.
In a joint statement, Chancellor Rachel Reeves and Foreign Secretary David Lammy said: "While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required."
They said they wanted to “ensure people suffering in Ukraine can benefit from these proceeds as soon as possible", noting they were “deeply frustrated” that it had not been possible to reach an agreement with Mr Abramovich so far.
The delay in releasing the funds is due to a disagreement between the UK government and his lawyers.
Roman Abramovich announced the sale of Chelsea in March 2022 amid calls for him to be sanctioned following Russia’s full-scale invasion of Ukraine.
The sanctions came days later and the sale was completed in May that year, with Mr Abramovich pledging to divert all proceeds to a foundation to benefit victims of the war.
It has been alleged the Russian billionaire has strong ties with Russian President Vladimir Putin, although this has been denied.
He cannot access the sale proceeds under UK sanctions but the money legally still belongs to him.
A spokesperson for the Foreign, Commonwealth and Development Office (FCDO) said previously: “This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible.
“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.”
