Abramovich’s £2.5bn still stuck in bank account

THE £2.5billion promised to Ukrainian war victims following the sale of Chelsea remains stuck in a bank account, with fears that it may take years — even an act of Parliament — to release the funds. As part of the forced transaction which took Chelsea out of Roman Abramovich’s hands and into the control of a US-based consortium two years ago after Russia’s invasion of its neighbour, the staggering sum was set aside for victims of the war. However, Mail Sport understands it remains in a London bank account, albeit gathering ‘sizable’ interest. One key issue concerns where funds will be diverted. This week Foreign Secretary David Cameron told the House of Lords of an ‘immensely frustrating situation’. He highlighted a disagreement over whether all the money goes to Ukraine or other countries, not including Russia or Belarus, that have suffered in the war. ‘That is the difficulty with the people who set up this trust,’ Lord Cameron said. ‘We have to resolve that with the European Union and Portugal, where Abramovich has citizenship. I do not want month after month to go by while the money has not got out of the door. It is difficult to get everybody into alignment, but we are on it.’

However, sources close to the matter say that if no agreement is reached over where the money goes, there may be an issue over how to ‘force’ the payments within the legal system. Abramovich has been sanctioned for allegedly benefiting from close ties to Vladimir Putin but has not been charged with criminal activity. Given the principle that forfeiture before conviction is illegal the Government would face issues redirecting the money without the oligarch’s consent.

A breakdown in talks could lead to a call for new legislation which would allow the Government to distribute the money without Abramovich’s approval. Should that be the case, a number of years could pass with the money stuck in the bank.

According to Abramovich wants some of the money to go to Russian ‘victims’.

Mike Penrose, a former UNICEF UK director who was appointed to oversee the foundation, has been tasked with breaking the impasse and has considered using the money on projects outside of Ukraine involving war refugees. Chelsea’s new owners, Todd Boehly and Clearlake Capital, have had nothing to do with the money since it was handed over and have no influence on the matter. A Government spokesperson said: ‘We’re working hard to reach an arrangement that delivers this money to humanitarian causes in Ukraine as quickly as possible.’