UK threatens to sue Abramovich over use of cash from Chelsea sale

Britain sanctioned Abramovich in a crackdown on Russian oligarchs after Moscow’s invasion of Ukraine in 2022, triggering a rushed sale of the Premier League membership and freezing of the proceeds.

Britain needs the funds spent solely in Ukraine according to a wider European push for Moscow to foot the invoice for the deaths and destruction triggered by its invasion. Abramovich is looking for extra flexibility and desires the cash to go to all victims.

In a uncommon joint assertion, British finance minister Rachel Reeves and overseas minister David Lammy mentioned on Tuesday the federal government was able to step up efforts to safe the cash.

“The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion. We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far,” they mentioned.

They mentioned the door for negotiations would stay open however that they had been “fully prepared to pursue this through the courts if required”.

A lawyer for Abramovich in Britain didn’t instantly reply to a request for remark.

Reuters reported in March that Britain was contemplating authorized motion over the difficulty.

Under Abramovich, Chelsea loved probably the most profitable run in its historical past earlier than the membership was bought to a consortium led by U.S. investor Todd Boehly and personal fairness agency Clearlake Capital in May 2022.

Proceeds from the sale are frozen in a British checking account. They can’t be moved or used with no license from the Office of Financial Sanctions Implementation, the company within the finance ministry that enforces sanctions.

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