UK Issues Final Warning to Abramovich Over £2.5bn Funds for Ukraine
The UK government has issued a decisive ultimatum to Roman Abramovich, demanding he release £2.5 billion from the sale of Chelsea FC to support humanitarian efforts in Ukraine. With a strict deadline of 90 days, failure to comply could lead to court action against the billionaire. This move coincides with upcoming EU discussions aimed at utilizing frozen Russian assets to secure a substantial loan for Ukraine.
Government Stance on Abramovich’s Funds
Keir Starmer, addressing the House of Commons, emphasized the urgency of the situation. He stated, “The clock is ticking on Roman Abramovich to honor the commitment he made when Chelsea FC was sold and transfer the £2.5bn to a humanitarian cause for Ukraine.” He assured that the government is ready to enforce compliance through legal channels to ensure the funds aid those severely impacted by the ongoing conflict.
Background on the Sale and Regulations
Abramovich sold Chelsea FC in 2022 under duress from the British authorities due to the Russian invasion of Ukraine. As part of the sale conditions, he was granted a license to proceed, on the condition that proceeds would be used to assist war victims in Ukraine. Currently, these funds are held in a UK bank account managed by Fordstam, Abramovich’s company.
Legal Complications and Abramovich’s Demands
Negotiations regarding the proper usage of the funds have reached a stalemate; while the UK government insists that the money be allocated solely for Ukrainian humanitarian causes, Abramovich has expressed a desire for the funds to benefit all victims of the conflict, including Russians.
According to reports, the government has given Abramovich a three-month timeframe to take the necessary steps for establishing a foundation and executing the transfer in line with the license terms. However, the Liberal Democrats are pushing for a more urgent deadline, suggesting Abramovich should comply by the end of the month.
Government’s Preparedness for Legal Action
Chancellor Rachel Reeves reaffirmed the importance of releasing the funds, stating, “It’s unacceptable that more than £2.5bn owed to the Ukrainian people can be allowed to remain frozen in a UK bank account.” She made it clear that if Abramovich fails to act, the government is willing to take the required actions to ensure the money reaches those in need.
Ministers Seek Agreement
Officials noted that they have made repeated attempts to negotiate terms with Abramovich for transferring the funds and are prepared to resort to legal action if necessary. In March, it was reported that ministers anticipated the need for legal proceedings to ensure access to the funds. While the government has indicated a willingness to consider any proposal Abramovich might put forth for a voluntary donation, the terms of the license strictly state that the proceeds must be directed towards humanitarian efforts in Ukraine.
Recent Developments in Ukraine and EU Discussions
As discussions continue regarding peace negotiations between Ukraine and Russia, recent talks involving U.S. officials have progressed, with claims that “90%” of contentious issues have been resolved after two days in Berlin. However, Russian representatives have yet to participate in these discussions.
Concurrently, European leaders are deliberating on a strategy to use frozen Russian assets to finance Ukraine’s recovery, with a major meeting slated for Thursday. Most of the assets, estimated at €185 billion, are currently held in a central depository in Brussels, where Belgium has stated it will not release funds without liability assurances.
Russia has condemned these plans as theft, threatening to retaliate against European investors’ interests in Russia. Proposed measures would see the EU offer an initial €90 billion loan to Ukraine, using the frozen assets, with the caveat that Russia’s claim to those funds would remain intact until reparations are agreed upon.
Conclusion
The UK government is steadfast in its efforts to free up essential funds meant to address the humanitarian crisis in Ukraine. With a clear timeline set for Roman Abramovich and legal actions looming if compliance is not met, the focus remains on ensuring every penny serves its intended purpose in this ongoing conflict.
- UK has issued a 90-day deadline for Abramovich to release £2.5bn for Ukraine.
- Funds are to be allocated strictly for humanitarian causes in Ukraine.
- Legal action may be pursued if Abramovich fails to comply by the deadline.
- Ongoing discussions among EU leaders aim to use frozen Russian assets to support Ukraine’s recovery.