A frozen Russian assets breakthrough: Abramovich’s Chelsea billions will head to Ukraine

As EU leaders converged on Brussels for a pivotal summit aimed at resolving the complex conundrum of redirecting profits from Russian central bank assets frozen at Euroclear – potentially unlocking billions for Ukraine’s reconstruction and defence – the UK dramatically intensified pressure on Roman Abramovich, the sanctioned Russian oligarch and former owner of Chelsea Football Club.

Britain on Wednesday said it was giving Abramovich a final chance to give Ukraine 2.5 billion pounds from the sale of Chelsea Football Club or face potential legal action.

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 soccer club and freezing of the proceeds.

Britain wants the funds spent only on humanitarian causes in Ukraine, in line with a wider European push for Moscow to foot the bill for deaths and destruction triggered by its invasion.

The proceeds, held in a UK bank account since the Russian oligarch divested the Premier League club under sanctions imposed after Moscow’s invasion of Ukraine, are to be transferred to a dedicated humanitarian foundation. The decision follows prolonged negotiations to ensure the funds – derived from the £4.25 billion sale to a consortium led by U.S. investor Todd Boehly – are used exclusively for charitable purposes and do not benefit Abramovich personally.

“Abramovich has provided the necessary assurances that he will not derive any benefit from this process,” a foreign office spokesperson said. “This unlocks vital funding that will make a tangible difference to those affected by the war in Ukraine.”

Should the Russian businessman fail to free the funds quickly, the government said in a statement that it was fully prepared to take him to court if necessary to enforce a 2022 agreement with him.

The expected breakthrough could resolve one of the more complex legacies of Britain’s sanctions regime against Russian elites. Abramovich, who held Portuguese and Israeli citizenship alongside his Russian passport, was sanctioned in March 2022 for alleged ties to President Vladimir Putin – claims he has consistently denied. The sale of Chelsea, which he owned for nearly two decades, was permitted only after he committed to directing proceeds toward humanitarian causes.

Initial plans for a broad-based charity benefiting “all victims of the war” encountered objections from London, which insisted on restricting aid to Ukraine. The newly approved structure establishes an independent foundation, governed by trustees unaffiliated with Abramovich, focused on medical aid, reconstruction, and support for displaced persons in Ukraine.

While the exact timeline for disbursements remains under discussion, the foreign office expressed confidence that transfers could begin in the coming months. The move aligns with broader Western efforts to redirect frozen Russian assets toward Ukraine’s recovery, including recent EU agreements to use profits from immobilised central bank reserves for military and financial support.

Abramovich’s representatives welcomed the development, describing it as fulfilment of his longstanding pledge. Chelsea FC, now thriving under new ownership, issued a brief statement noting the resolution of a matter from its previous era.

With Reuters, edited by g.g.

Caption: Businessman Roman Abramovich attends a meeting of the Bolshoi and Mariinsky Theatres’ Board of Trustees at the Kremlin in Moscow, Russia, 13 May 2025. EPA/SERGEY BOBYLEV/SPUTNIK/KREMLIN POOL