Why is the UK forcing ex-Chelsea owner Roman Abramovich to release $3.3 billion for Ukraine?

Key Highlights

• The government now says time has run out for negotiations, and that court action will follow if Abramovich fails to comply within months. More from Explainers In a first, Ukraine pulls off attack on Russian submarine Ukraine's Zelenskiy ditches NATO ambition ahead of peace talksWhen Abramovich was forced to sell Chelsea FCRoman Abramovich sold Chelsea FC in 2022 after coming under UK sanctions in the wake of Russia’s full-scale invasion of Ukraine. British authorities had moved swiftly at the time to prevent sanctioned individuals from benefiting financially while still allowing certain transactions to proceed under tightly controlled conditions. Abramovich was granted a special licence by the UK government to complete the sale of the Premier League club.
• That authorisation came with a clear stipulation: the proceeds from the transaction were to be directed towards supporting victims of the war in Ukraine. The sale ultimately raised around £2.5 billion.
• However, instead of being transferred to humanitarian causes, the money was placed into a UK bank account controlled by Fordstam, a company linked to Abramovich. Editor’s Picks1How India-Russia ties are not Soviet-era nostalgia, but a necessity in a multipolar world 2What Putin’s Delhi visit and India-Russia 2.0 mean for ChinaSince then, the funds have remained frozen, unable to move without further government approval and agreement over how the money would be used. The prolonged stalemate has its roots in fundamental disagreements between Abramovich and the UK government. While Abramovich has said he wanted the money to help “all victims of the war in Ukraine”, including Russians, the British government has maintained that the funds must be used specifically for humanitarian purposes inside Ukraine. STORY CONTINUES BELOW THIS ADHow negotiations broke downSuccessive UK governments have said they attempted repeatedly to reach a voluntary settlement with Abramovich. Ministers have pointed out that they explored various proposals and were willing to consider “any proposal” that would result in the money being donated to Ukraine in line with the original licence conditions. Despite these efforts, talks failed to deliver an agreement.
• By March this year, ministers were already signalling that legal action was becoming increasingly likely, reported The Guardian.
• Reports at the time indicated that officials believed court proceedings might be the only way to gain acces.