UK Issues Ultimatum to Roman Abramovich Over £2.5 Billion Chelsea Sale Funds for Ukraine Aid

UK Government Demands Release of Frozen Chelsea Funds

The United Kingdom government has issued a definitive ultimatum to Russian oligarch Roman Abramovich, demanding the release of £2.5 billion (approximately $3.34 billion) from the sale of Chelsea Football Club. The funds are intended for Ukrainian humanitarian aid, and Abramovich has been given 90 days to comply or face legal action. This announcement was made on December 17, 2025, by Prime Minister Keir Starmer, who addressed Parliament on the matter.

Background to the Sanctions and Sale

The dispute over the funds originated in March 2022, following Russia's full-scale invasion of Ukraine. Roman Abramovich, then owner of Chelsea FC, was sanctioned by the UK government due to his alleged 'close ties with the Kremlin'. Under pressure, Abramovich agreed to sell the club, with a pledge to donate the proceeds to victims of the war in Ukraine. The sale of Chelsea FC was completed in May 2022 to a consortium led by Todd Boehly and Clearlake Capital. However, the £2.5 billion proceeds have remained frozen in a UK bank account, specifically held by Abramovich's company, Fordstam Ltd., due to disagreements over their disbursement.

The Sticking Point: Scope of Beneficiaries

A primary point of contention has been the scope of beneficiaries for the humanitarian aid. The UK government insists that the funds must be used exclusively for humanitarian causes within Ukraine. Conversely, Abramovich has reportedly sought greater flexibility, stating his desire for the money to benefit 'all victims of the war in Ukraine,' a stance that some interpret as potentially including Russians affected by the conflict. This disagreement has led to a prolonged stalemate, with ministers expressing 'immense frustration' over the delays.

Government's Firm Stance and Next Steps

Prime Minister Starmer, alongside Chancellor Rachel Reeves and Foreign Secretary Yvette Cooper, has emphasized the government's determination to ensure the funds reach their intended recipients. A license has now been issued to permit the transfer of the funds to a newly established foundation for Ukrainian humanitarian assistance. Chancellor Reeves stated, 'It's unacceptable that more than £2.5 billion of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account. It's time for Roman Abramovich to pay up.' Foreign Secretary Cooper added, 'This money was promised to Ukraine over three years ago. It is time Roman Abramovich does the right thing, but if he won't we will act.' The government has made it clear that while negotiations remain open, they are 'fully prepared to pursue this through the courts' if Abramovich fails to honor his commitment within the 90-day period.