Roman Abramovich promised a £2.5 billion donation from the sale of Chelsea to war victims in Ukraine but the money is yet to be paid, despite nearly two years passing.
Following Russia’s invasion of Ukraine, Roman Abramovich was forced to sell the London club to a US-based consortium led by Todd Boehly, with a large portion of the proceeds intended for victims of the conflict.
However, the funds remain held in a London bank account, with discussions ongoing about the distribution of the money to other countries affected by the war.
Earlier this week, Foreign Secretary David Cameron expressed frustration over the situation, citing disagreement over whether the donation should be allocated solely to Ukraine or also to other impacted nations.
Lord Cameron said: ‘‘That is the difficulty with the people who set up this trust.”
“We have to resolve that with the European Union and Portugal, where Abramovich has citizenship. We are working very hard because I do not want month after month to go by while the money has not gotten out of the door. It is difficult to get everybody into alignment, but we are on it.’’
Daily Mail’s reports suggested that if an agreement on the allocation of funds cannot be reached, legal complications may arise in enforcing the payments.
Despite facing sanctions due to his connections with Vladimir Putin, Abramovich has not been involved in any criminal activities.
As he has not been convicted of any wrongdoing, the government may encounter challenges in redistributing the money without his consent, as it goes against the long-standing legal principle of forfeiture before conviction.
In the meantime, a report by Politico indicates that the 57-year-old is interested in having some of the donations allocated to Russian victims.
Meanwhile, the former director of UNICEF UK Mike Penrose has been appointed to oversee the foundation and he is working to resolve the impasse by considering using the funds for projects benefiting war refugees outside of Ukraine.
This potential move would redirect the money to help displaced Ukrainians, including those currently in this country.
However, Daily Mail’s report stated that Penrose no longer believed a deal could be reached and was worried about the funds being stuck indefinitely.
If negotiations fail and no agreement is reached, there may be a need for new legislation that would give the government the authority to distribute the funds without Abramovich’s consent.
Meanwhile, this could cause a significant delay, potentially lasting for several years, resulting in the money being stagnant in the bank.
What’s likely to happen to Roman Abramovich’s fund?
Now that Abramovich is no longer in the spotlight with Chelsea, he does not feel pressured to reach an agreement.
Hence, if no resolution is reached, officials may advocate for new laws that would enable the government to distribute the funds without the involvement of the Russian billionaire.
