Roman Abramovich: Rachel Reeves and David Lammy threaten to sue former Chelsea owner over £2.5bn club sale cash for Ukraine

Legal action is now being threatened by Chancellor Rachel Reeves and Foreign Secretary David Lammy over the locked cash.

Where did Roman Abramovich’s £2.5bn cash come from?

Abramovich was one of the Russian oligarchs sanctioned by the UK after Vladimir Putin launched the invasion of Ukraine, and he quickly said that he would sell Chelsea because of this.

The UK government froze his assets in the UK on March 10 because of his "close ties with the Kremlin", and on March 12, 2022 the Premier League disqualified Abramovich as a director of Chelsea.

The tycoon, who had bought Chelsea in 2003, sold the club in May 2022 to BlueCo, an investment vehicle led by the American businessman Todd Boehly and Clearlake Capital.

The £2.5bn from the sale is sitting in a UK bank account. The plan is for the money to be used to alleviate the suffering caused by the war in Ukraine.

Who is taking legal action against Roman Abramovich?

Chancellor Rachel Reeves and foreign secretary David Lammy said they are “frustrated” by the failure to reach agreement with Abramovich on the frozen proceeds of the sale.

The money cannot be moved without a licence from the Office of Financial Sanctions Implementation.

Reeves and Lammy said: “The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion.

“We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far.

“While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.”