UK government told to 'stop dragging its feet' over Roman Abramovich’s Chelsea sale funds

Ed Miliband has been told to “stop dragging his feet” over the proceeds of Roman Abramovich’s sale of Chelsea Football Club as pressure builds on the government to resolve a standoff.

The foreign secretary was pressed on the issue in the Commons by Calum Miller, the Liberal Democrats’ foreign affairs spokesman, at Foreign Office questions on Tuesday.

Mr Abramovich was sanctioned by Britain over his links to Vladimir Putin’s Russian regime.

He was then forced to sell the top flight London club in May 2022 and the proceeds of that sale have stayed in a UK bank account ever since. The government is locked in a dispute with the oligarch about what should happen to the funds.

Mr Miliband told the Commons that the UK and its allies are working to hand over Russian assets frozen since the start of the Ukraine war to Kyiv this winter. He would not comment directly on the Chelsea sale.

According to the response to a written question from Mr Miller, the government gave Mr Abramovich a 90-day deadline last December when it “issued a licence permitting the transfer of over £2.6 billion in proceeds from the sale of Chelsea Football Club into a new foundation for humanitarian purposes in Ukraine”.

“No such transfer has yet been made,” Foreign Office minister Uma Kumaran added.

The foreign secretarytold the Commons he would be “careful what I say about that because of legal processes”, adding: “But we are absolutely determined to take action on the question he raised around Chelsea.”

Mr Miliband also said: “But more broadly, one of the things that we will be urging in the coming months is our EU partners, and in Britain, us moving on Russian sovereign assets more generally, because we know that one of the most important things we need to do is give proper support to Ukraine through this winter and beyond, and Russian sovereign assets are a very, very ideal way to do that.”

After the Commons exchange, Mr Miller urged the government to act swiftly to claim the frozen assets.

He said: “It is completely unacceptable that over £2.6 billion meant for Ukrainian war victims continues to sit unused in a British bank account.

“The government say they are ‘absolutely determined’ to resolve this, but its refusal to set a firm deadline tells a very different story. Empty promises mean nothing to the people of Ukraine who are enduring unimaginable hardship today, while Roman Abramovich’s lawyers kick the can down the road.

“The foreign secretary must stop dragging his feet and take Abramovich to court.”