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UK foreign secretary David Lammy has vowed to take “action” that could include launching a legal case in order to free up £2.3bn held from the sale of Chelsea Football Club by Russian billionaire Roman Abramovich more than two years ago.
The funds, which the UK government has frozen and wants to be diverted to Ukraine, have been sitting in the bank account of a dedicated trust for the past two years, while talks about how exactly the money should be used drag on.
“I’m frustrated that it hasn’t happened, is the truth — and that money needs to be distributed, it needs to be used,” Lammy told the Financial Times in Tokyo. He said he is shifting to an “action-oriented approach” to try and break the logjam.
He stressed that his “first instinct is not litigation” because that route “takes time”, though people familiar with his thinking said that going to court to resolve the issue is one of the options on the table. Reaching a deal with the foundation set to be established to handle the cash remains another.
While he acknowledged there are “legal complexities” around the issue, he vowed: “I’m determined to see that money get out the door and to do all I can to bring that about.”
The UK government’s position has been that the money must be spent inside Ukraine, while the mooted foundation — which involves former Unicef UK chief executive Mike Penrose — has pushed for flexibility to support refugees who have fled the war, people familiar with the stand-off told the FT previously.
In a message on Chelsea’s website in March 2022 — the same month he was sanctioned by the UK — Abramovich said the foundation would be “for the benefit of all victims of the war in Ukraine”, including by providing “critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery”.
Lammy’s intervention comes as Kyiv faces escalating pressure after the US paused all military aid. Citing the “urgency of the moment” and the need to step up efforts to assist Ukraine, he said: “I’m looking at this issue intently.”
The foreign secretary also backed the idea of a new multilateral defence bank this week, to help the UK and Europe finance an expansion of their defences.
The Foreign Office said: “This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible. The proceeds are currently frozen in a UK bank account while a new independent foundation is established to manage and distribute the money.
“UK officials continue to hold discussions with Mr Abramovich’s representatives, experts and international partners, and we will double down on our efforts to reach a resolution.”
A representative for Abramovich did not immediately respond to request for comment.
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