Abramovich foundation application intensifies row over frozen Chelsea sale funds

Roman Abramovich’s effort to unlock the frozen Chelsea sale proceeds has moved into a new phase after a charitable foundation was formally submitted for registration, but the application does not resolve the underlying dispute with the UK government over how the money should be used.Abramovich charity application deepens dispute over frozen Chelsea sale proceedsA new charitable foundation intended to oversee the £2.35 billion frozen from the sale of Chelsea has formally applied to the UK Charity Commission, in a move that intensifies the long-running stand-off between Roman Abramovich and the UK government over the destination of the funds.The Foundation for the Victims of Conflict has been set up with Mike Penrose, a former UNICEF executive, in a leadership role and a board of trustees that includes former United Nations humanitarian chief Martin Griffiths, campaigner Nimco Ali and former Walton Family Foundation executive Caryl Stern.The application gives formal structure to Abramovich’s stated intention to direct the proceeds towards humanitarian causes for victims of conflict more broadly, rather than limiting support solely to Ukraine. That remains the central point of disagreement with the UK government, which has maintained that the full proceeds should be used for humanitarian causes in Ukraine.A Charity Commission spokesperson confirmed that the regulator has received the application and will assess whether the organisation meets the legal tests for charitable status and whether its trustees comply with their legal duties.The money remains frozen following Chelsea’s May 2022 sale to the Todd Boehly and Clearlake Capital-led BlueCo consortium after Abramovich was sanctioned following Russia’s invasion of Ukraine. The UK government has made clear that it will not approve the release of the proceeds unless its conditions on the use of the money are met.The proposed foundation’s remit is understood to cover victims of conflict anywhere in the world, which aligns with Abramovich’s legal position but conflicts directly with Whitehall’s stance. That means the application is better seen as an attempt to put governance infrastructure around the funds rather than a breakthrough in the dispute itself.The issue remains politically and legally sensitive, with Abramovich’s legal team maintaining that the sale proceeds are wholly his and that any attempt to confiscate them would be challenged. The government, meanwhile, has continued to hold firm on its Ukraine-only position.That leaves the Charity Commission process as an important development, but not yet a route to immediate release of the money. The broader deadlock remains in place, with further engagement between the parties expected as the application is considered.