Abramovich lawyers warn UK over Chelsea sale proceeds as March deadline nears

Lawyers for Roman Abramovich have told the UK Government there is “no legal basis” to threaten litigation over the frozen proceeds from the 2022 sale of Chelsea, insisting the £2.35bn remains “wholly” owned by the sanctioned Russian billionaire through his UK-registered vehicle.In correspondence sent to ministers on Monday and seen by UK media, Abramovich’s counsel said the funds are held by Fordstam Limited and remain its property despite being frozen under the sanctions regime. The letter said: “It is important to emphasise that the funds – although currently frozen – remain the property of Fordstam Limited, which is wholly owned by Mr Abramovich.”The intervention escalates a long-running dispute over how the money should be deployed for humanitarian relief linked to Russia’s invasion of Ukraine. Abramovich pledged in March 2022 that the “net proceeds” of the sale would be donated for the benefit of victims of the war, but the funds have remained in limbo for nearly four years.Chelsea was sold in May 2022 to a consortium led by Todd Boehly and Clearlake Capital after Abramovich was sanctioned by the UK over alleged links to Russian President Vladimir Putin. The proceeds, held in a UK bank account, have been frozen since completion of the transaction and cannot be moved without government authorisation.Ministers set a deadline in March for Abramovich to respond to demands that he releases the funds for victims in Ukraine, with a 17 March date referenced in recent government correspondence. In December, Prime Minister Sir Keir Starmer publicly warned Abramovich to co-operate or face court action, telling Parliament: “My message to Abramovich is clear: the clock is ticking. Honour the commitment you made and pay up now, and if you don’t, we are prepared to go to court so every penny reaches those whose lives have been torn apart by Putin’s illegal war.”Abramovich’s lawyers pushed back, arguing that a licence issued by the Government and threats of litigation were “politically charged and highly publicised” and made “without having a legal basis” to do so. The letter also said the approach was consistent with how ministers had handled the issue since 2022, spanning “four prime ministers and five foreign secretaries”.While disputing the Government’s posture, the lawyers said Abramovich remained committed to donating the proceeds, but on terms he believes were agreed at the time of the sale. They said the plan was recorded in a formal deed approved by the Government and repeated that Abramovich’s intention was to support “all” victims of the war, not only those inside Ukraine. “The proposal to donate these proceeds was initiated by Mr Abramovich prior to the imposition of sanctions, and he remains fully committed to ensuring that the funds are used for charitable purposes,” the letter said. “As such, any donation will be made voluntarily by our clients.”The letter warned that if the Government sought confiscation instead, it should initiate proceedings that would be contested. “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,” it said.Foreign Secretary Yvette Cooper responded that ministers were prepared to act if Abramovich did not. She said: “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. That’s why the licence has been issued. It is time this money was used to rebuild the lives of people who’ve seen devastation as a result of Putin’s illegal war.”The dispute has also been complicated by parallel legal issues in Jersey, where authorities previously imposed freezing orders on assets linked to Abramovich and where related litigation remains unresolved, adding another layer of risk and delay to any settlement on the Chelsea proceeds.