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British Foreign Secretary David Lamy vowed to take “action” including launching a legal lawsuit to free the £2.3 billion retained from the sale of the Chelsea Football Club by Russian billionaire Roman Abramovich over two years ago.
The funds the UK government has frozen and hopes to decouple to Ukraine have been sitting in a bank account of a dedicated trust for the past two years, talking about how the money should be used.
“I'm frustrated that it's not happening, it's true, and we need to distribute the money and use it,” Ramy told Tokyo's Financial Times. He said he was trying to break logjam by moving on to a “action-oriented approach.”
He emphasized that his “first instinct is not a lawsuit” because the route “takes time,” but those familiar with his ideas said going to court to resolve the issue is one of the table options. To reach a deal with a set of foundations established to process cash remains another.
He acknowledges that there is “legal complexity” around the issue, but he vows: “I decided that money would come out the door and do everything I could to bring it.”
The UK government's position is that money must be spent within Ukraine, but the enforced foundations, including former UNICEF CEO Mike Penrose, are seeking flexibility in helping refugees fleeing the war, people familiar with the standoffs previously told FT.
Chelsea's website in March 2022 – in the same month's message that he was approved by the UK, Abramovich said, “in the interests of all victims of the war in Ukraine,” including “providing the urgent and immediate needs of the victims and supporting the long-term work of recovery.”
Ramie's intervention comes to Kiev to intensify the pressure after the US suspends all military aid. Citing the “urgency of the moment” and the need to strengthen efforts to support Ukraine, he said: “I am looking at this issue with great enthusiasm.”
The Foreign Secretary also supported the idea of a new multilateral defense bank this week to help the UK and Europe lend their defense expansion.
The Ministry of Foreign Affairs stated: “This government is working hard to ensure that the proceeds from the sale of Chelsea FC will reach Ukraine's humanitarian causes as soon as possible. The proceeds are currently frozen in UK bank accounts, but a new independent foundation has been established to manage and distribute money.
“UK officials continue to discuss with Mr Abramovich's representatives, experts and international partners, and will double their efforts to reach the resolution.”
Representatives from Abramovich did not immediately respond to requests for comment.
