Roman Abramovich, the former owner of Chelsea Football Club, was compelled to sell the club in May 2022 amid sanctions following Russia's invasion of Ukraine. The sale generated £2.5 billion, which currently remains frozen in a UK bank account. The UK government insists that these funds be used solely for humanitarian purposes, particularly to aid victims of the war in Ukraine. However, despite intentions and agreements, the funds have yet to be distributed.
The UK government has emphasized its commitment to ensuring that the proceeds are directed towards humanitarian causes in Ukraine swiftly. The Foreign, Commonwealth & Development Office stated:
"This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible."
Despite these assurances, the establishment of a new independent foundation to manage and distribute the funds is still pending. As of now, the Charity Commission has not received an application to create such a foundation. This delay keeps the funds frozen, delaying much-needed aid to war victims.
Abramovich, who held close ties with Russian President Vladimir Putin, was sanctioned by the UK government following the start of the conflict. He expressed his desire for the proceeds to benefit "all victims of war." Nonetheless, the funds remain inaccessible while bureaucratic processes unfold.
In a separate financial move, the UK government signed an agreement with Ukraine's Finance Minister Sergii Marchenko to deliver £2.2 billion in funding to Ukraine's military. This funding differs from the Chelsea sale proceeds and will be reimbursed through profits from sanctioned Russian sovereign assets held within the European Union.
In light of these developments, it's clear that although governmental strategies are underway, challenges persist in translating financial arrangements into tangible humanitarian support. The Foreign Office confirmed:
"The proceeds are currently frozen in a UK bank account while a new independent foundation is established to manage and distribute the money."
With the Labour Party succeeding the Conservatives in government, their stance on the allocation of these funds has remained consistent. This continuity underscores a broader commitment to ensuring that humanitarian aid reaches those affected by the ongoing conflict in Ukraine.
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