UK Government Takes Legal Action Against Russian Oligarch for Ukrainian Aid

The British government has announced its intention to take legal action against Russian oligarch Roman Abramovich to release billions of euros that have been frozen since the onset of the Ukraine conflict. This decision follows ongoing disputes regarding the allocation of funds from the sale of the Chelsea Football Club, which Abramovich sold under pressure from sanctions imposed after Russia's invasion of Ukraine.

For over three years, Abramovich's assets, amounting to approximately £2.5 billion (around EUR2.9 billion), have been held in the UK as part of sanctions targeting pro-Kremlin individuals. The funds, which stem from the sale of Chelsea FC in 2022, are intended to aid victims of the war in Ukraine. However, negotiations with Abramovich have not yielded results, prompting the government to consider judicial routes to ensure the money reaches those in need.

UK Finance Minister Rachel Reeves and Foreign Secretary David Lammy expressed their frustration over the lack of progress in discussions with Abramovich, emphasizing the urgency of making these funds available to assist Ukrainian war victims. The officials stated that while negotiations are still open, the government is prepared to pursue legal avenues if necessary.

The backdrop to this situation includes the rapid sale of Chelsea FC, a club Abramovich had owned since 2003. Following the sanctions imposed in response to the Ukraine invasion, the sale was expedited, with conditions that prevented Abramovich from profiting from the transaction. After the sale, the UK government froze the proceeds, aiming to allocate the funds to those affected by the ongoing conflict.

Sources familiar with the matter have reported that disagreements have arisen regarding the distribution of the funds. Abramovich reportedly desires that the money be allocated to all victims of the war, which includes both Ukrainian and Russian individuals affected by the conflict.

Abramovich's wealth was acquired through strategic business maneuvers following the collapse of the Soviet Union. His notable dealings included the sale of the oil company Sibneft to Gazprom for $13 billion in 2005. He also served as the governor of the Chukotka region in Eastern Russia, where he invested significantly in local infrastructure.

In 2022, both the EU and the US imposed sanctions on Abramovich, resulting in the freezing of his assets in these jurisdictions, which included luxury yachts and private jets. Reports suggested that he may have taken steps to shield his wealth from sanctions, such as transferring assets to his children. Legal documents previously surfaced indicating that he utilized a trust fund based in Cyprus to manage ownership of certain high-value assets, which may include luxury aircraft valued at approximately $400 million.

The UK government's current stance reflects a broader commitment to ensuring financial support for those suffering due to the war in Ukraine, underscoring the seriousness with which it views the situation involving Abramovich and the need for accountability in the allocation of his frozen assets.