Starmer tells Abramovich to 'pay up now' or face court over Chelsea sale proceeds

UK Labour leader Keir Starmer told MPs on Wednesday that Russian oligarch Roman Abramovich must 'pay up now' to victims of the war in Ukraine or face court action, as lawmakers were briefed on the status of the £2.5 billion tied up in the United Kingdom from the sale of Chelsea Football Club. 'The clock is ticking,' he said, urging the billionaire to honour a commitment he made when selling the club in 2022 and to ensure the proceeds reach those affected by Vladimir Putin's invasion.

The money remains frozen in a British bank account under a government licence that allowed the Chelsea sale to go ahead but bars Abramovich from accessing or benefiting from the proceeds. The licence specifies that the funds must be used for humanitarian causes in Ukraine and cannot benefit Abramovich or any other sanctioned individual. The government contends the settlement's purpose is limited to relief and reconstruction work for Ukraine, not to provide a generalized payout to the oligarch or others connected to him.

Abramovich has argued that the funds should be used for 'all victims of the war,' suggesting a broader scope that could include Russians who have suffered. The government has maintained that the proceeds were designated for humanitarian aid related to Ukraine and are not available to the former Chelsea owner under UK sanctions. His representatives declined to comment.

Foreign Secretary Yvette Cooper told the BBC that Abramovich 'needs to honour that commitment, pay that money' and warned that a legal dispute could be costly and protracted if he refuses to act. She said the government would pursue court action if necessary, though the broader aim is to secure timely disbursement for humanitarian purposes. The Treasury noted that under the licence, the money must be directed to humanitarian causes in Ukraine and cannot benefit the sanctioned individual.

Chancellor of the Exchequer Rachel Reeves said it was unacceptable that more than £2.5 billion owed to the Ukrainian people could remain frozen in a UK bank account, signaling a readiness to pursue legal avenues if Abramovich does not comply. Officials say Abramovich has 90 days to act before the UK considers taking legal action.

The legal push comes as EU leaders on Thursday are set to review proposals to use proceeds from frozen Russian assets to support Ukraine's vast budget and defence needs. Russia has resisted the proposals, arguing they should not be used to fund Kyiv’s needs. The Chelsea sale was permitted under a special licence granted after Russia’s invasion to ensure the owner could exit the club without direct financial benefit from the sale, though the money itself remains restricted amid sanctions.

Background context remains contested: Abramovich’s links to Russian President Vladimir Putin have been a point of contention in London and Brussels, though he has denied having a personal official role with the Kremlin. Analysts note that the underlying public policy objective is to ensure sanctions generate tangible support for Ukraine while preventing sanctioned individuals from accessing proceeds. The government emphasizes that the licence was designed to prevent abuse while allowing the sale to proceed, with strict prohibitions on profit retention by Abramovich.

The matter is evolving as ministers weigh legal options and as EU discussions consider broader use of frozen assets to shore up Ukraine’s budget and defence needs. Abramovich’s camp has not publicly indicated a willingness to surrender the funds outside of court proceedings. In the interim, the money remains blocked in a UK account, a stalemate that both sides describe as preventing further harm caused by the war while awaiting a judicial or political resolution.