The £2.3 billion ($2.8 billion) generated from the sale of Chelsea last year is still frozen in a UK bank account despite promises to deliver it to Ukraine war victims. The licence granted by the UK government for the next stage in this process has a deadline of November 30, although it is likely to be extended again.
Former Chelsea owner Roman Abramovich was sanctioned by the UK government in March 2022 for links to the Russian government and was forced to sell the Premier League club, with the money earmarked to help victims of the war in Ukraine. However, there has been no progress, and the UK government is growing increasingly frustrated.
According to The Financial Times, Abramovich is contributing to the delay because he wants some of the money to be spent on people outside of Ukraine, such as “victims of food insecurity.” A UK government source corroborated this, stating that Abramovich is holding up the transfer of cash. However, Abramovich strongly denies any involvement in the process.
The proceeds from the sale are frozen in a UK bank account after the Office of Financial Sanctions Implementation (OFSI) issued a licence to permit Abramovich to sell Chelsea. The money cannot be moved or used without a licence from OFSI.
“The proceeds from the sale of Chelsea FC are frozen in a UK bank account while independent experts establish a foundation to manage and distribute the money,” said a spokesperson for the Foreign, Commonwealth and Development Office. “A licence application will then need to be made to move the funds to the foundation.”
When the Todd Boehley-Clearlake Capital consortium completed its takeover last May, the huge sum was transferred to a bank account. However, it remains stuck there despite the ongoing war in Ukraine.
One of the factors holding up the deal is that Abramovich is a Portuguese citizen, so the UK government has involved the EU in signing off on the deal for the new foundation, leading to additional bureaucracy.
A sensitive issue remains how precisely the funds should be allocated. Abramovich stated that the money would be for the benefit of all victims of the war in Ukraine, including providing critical funds for immediate needs and supporting long-term recovery. However, the UK government insists that the money must be spent within Ukraine’s territory.
The dispute centers around whether the funds should go to people in need in Ukraine itself or include a broader definition of war victims that could encompass individuals outside the country. The UK government is not comfortable with the latter scenario.
“We’ve been clear since the sale of Chelsea FC went through that we’d only issue a licence that ensures the proceeds are specifically used for humanitarian purposes in Ukraine,” said a spokesperson for the Foreign, Commonwealth and Development Office. “We want this money to reach Ukraine as quickly as possible and remain open to any arrangement that clearly delivers this in line with these conditions.”
The initial licence had an expiry date, which has been extended multiple times, with the current deadline set for November 30. While another extension is possible, the UK government is growing increasingly frustrated with the delays and bureaucracy that are preventing the cash from reaching the victims of the Ukraine war.
In conclusion, the £2.3 billion generated from the sale of Chelsea last year remains frozen in a UK bank account, despite promises to deliver it to Ukraine war victims. The UK government and Abramovich are at odds over how the funds should be allocated, with the government insisting on their use within Ukraine’s territory. The ongoing delays and bureaucracy have led to growing frustration, and it remains uncertain when the money will reach those in need.