Sir Keir Starmer has warned Roman Abramovich to release £2.5bn from the sale of Chelsea Football Club for victims of the war in Ukraine or face legal action by the UK government.
Addressing MPs, the Prime Minister said the sanctioned Russian billionaire must “pay up now”, as the government issued a formal licence intended to enable the long-promised funds to be released. The warning marks the strongest attempt yet by ministers to force Abramovich to honour his pledge, first made in 2022, to donate the proceeds of the club’s sale to those affected by Russia’s invasion of Ukraine.
Sir Keir told the House of Commons that the government was prepared to take the matter to court if necessary. “My message to Abramovich is this: the clock is ticking,” he said. “Honour the commitment you made and pay up now. If you don’t, we are prepared to go to court so that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
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Despite the renewed pressure, sources close to Abramovich said he was unlikely to comply, insisting he has a strong legal case to resist any attempt by the UK authorities to seize the funds. Advisers believe the government’s latest warning differs little from a similar threat issued in June 2025, which did not result in court proceedings.
The money has been frozen for more than three years following a breakdown in talks between the UK government and Abramovich. Chelsea was sold in May 2022 to a consortium led by Todd Boehly after Abramovich was sanctioned over alleged links to Vladimir Putin. When he announced the sale, Abramovich said the “net proceeds” would be donated to “all victims” of the war in Ukraine.
However, the situation was complicated when the Royal Court of Jersey imposed a freezing order on around $7bn (£5.3bn) of Abramovich’s assets in April 2022. Jersey’s attorney general said at the time that Abramovich was a suspect in a criminal investigation, prompting a protracted legal battle launched by the billionaire to clear his name. That dispute remains unresolved.
Further complexity arises from the structure holding the Chelsea sale proceeds. The £2.35bn is held by Fordstam, a UK-registered company controlled by Abramovich, which also carries a £1.5bn debt to Camberley International Investments, its Jersey-based parent company that is subject to the asset freeze. While sources close to negotiations insist the debt would not reduce the amount destined for Ukraine, Abramovich’s lawyers have repeatedly refused to discuss releasing the funds until the Jersey case is settled.
Former government figures involved in earlier negotiations have described seizing the money outright as a “nuclear option”, warning it could undermine investor confidence and damage the UK’s reputation as a safe financial jurisdiction.
The dispute comes amid wider debate in Europe over the use of frozen Russian assets. The EU has immobilised around £184bn of Russian sovereign funds, mostly held in Belgium. Brussels and several member states want to use the assets to raise up to €90bn (£79bn) in loans for Ukraine, to be repaid through future Russian reparations.
Belgium and a number of other countries, including Italy, Hungary and Slovakia, have opposed the plan, citing legal risks. Italian prime minister Giorgia Meloni has warned that using frozen assets without a firm legal basis would hand Moscow “its first victory since the war began”.
As diplomatic tensions continue, the fate of the Chelsea funds remains unresolved, with both sides appearing ready for a prolonged legal battle.
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