Abramovich warns UK government against £2.35bn Chelsea funds

Roman Abramovich’s lawyers have warned the United Kingdom government not to confiscate the proceeds from the Chelsea sale, according to The Times.

Nearly four years after Todd Boehly and the Clearlake Consortium completed their Chelsea takeover, the £2.35 billion generated from the deal is still frozen in a bank account.

Those proceeds are caught up in a complex legal and political dispute involving the British government and the Russian business oligarch.

Abramovich’s lawyers insist that the money belongs to him through his company, Fordstam Limited. They also claim that any attempt by the government to confiscate the funds will be challenged in court. 

The money has been in limbo since Abramovich was forced to sell Chelsea shortly after Russia invaded Ukraine.

The sale was approved under special conditions, with the understanding that the proceeds would eventually be used to help victims of the conflict.

But both parties are struggling to see eye to eye over how the money should be distributed. Prime Minister Keir Starmer has insisted that the funds must go specifically to humanitarian efforts in Ukraine. 

However, Abramovich, who has previously ruled out buying another club, wants the money to support all victims of the conflict, regardless of their location.

In a letter sent by Abramovich’s legal team, they say he remains “fully committed” to donating the money to charitable causes. 

But they also claim that government restrictions on how it can be spent and an ongoing criminal investigation in Jersey are preventing the donation from moving forward.

The letter adds: “Strangely, the UK government appears to be treating this proposed donation as a form of punitive measure against Mr Abramovich. 

“This is fundamentally incorrect. It is important to emphasise that the funds — although currently frozen — remain the property of Fordstam Limited, which is wholly owned by Mr Abramovich.

“Should the UK government believe it has the legal basis to confiscate these funds instead, it is of course open to initiate formal confiscation proceedings, which will be contested in court.”

The British government had reportedly set a March 17 deadline for Abramovich to release the funds to a new foundation focused on Ukraine. 

Officials have even warned that legal action could follow if the money is not transferred.