The War between Ukraine and Russia: Roman Abramovich’s Controversial Deal with Chelsea’s Sale and the Frozen Funds

War between Ukraine and Russia: Roman Abramovich refuses to release funds for Ukraine from Chelsea sale

In a recent development, Russian oligarch Roman Abramovich is refusing to release a “substantial part” of the more than 2 billion euros from the sale of his London club Chelsea last year to benefit “the Russians affected by the conflict”, according to the Daily Mail. This comes as a blow to the British government, which had frozen Abramovich’s British assets in mid-March 2022 and insisted that the funds be paid in full to the victims of the war in Ukraine.

Abramovich had made a promise to donate the net proceeds of the sale, estimated at 2.3 billion pounds (2.1 billion euros), to the victims of the war in Ukraine. However, he now wants a portion of the money to go to the Russians affected by the conflict and refuses to release the funds without an agreement on the subject.

The British government, which must validate any transfer of the funds, is adamant that the money should go exclusively to the intended beneficiaries. Foreign Minister James Cleverly stated, “We want to make sure that the money released goes exclusively to the beneficiaries for whom it is intended. I need to be fully reassured on this point.” The Daily Mail reports that Abramovich’s signature is essential for the funds to be sent to charities in Ukraine, further delaying the process.

The situation is causing frustration among those involved in the process. An anonymous source close to the file expressed disappointment, saying, “At first, we hoped that the money would be transferred last summer, then we waited for developments in January. Now we hope the money will start flowing into Ukraine before the harsh winter sets in again towards the end of the year. But there is currently no guarantee that this will happen.”

In addition to his role in the Chelsea sale, Abramovich had also attempted to mediate between Kyiv and Moscow in the spring of 2022. However, his diplomatic efforts did not prevent him from facing sanctions from the European Union and the United Kingdom. As a result, his fortune, estimated at $14.5 billion by Forbes magazine in 2021, has now dwindled to around $9 billion.

It is worth noting that Abramovich had anticipated the impact of the sanctions. The Guardian revealed in early January that he had transferred several billion dollars of assets to the accounts of his seven children before the Russian aggression, making it more difficult for European authorities to seize his real estate properties, private jets, and other assets.

The ongoing dispute over the release of funds from the Chelsea sale highlights the complexities and challenges surrounding the war between Ukraine and Russia. As the conflict continues, the need for financial support for the victims remains crucial, and finding a resolution to this issue is of utmost importance.

What challenges and complexities arise when dealing with the frozen assets of individuals involved in international conflicts, as seen in the dispute between Abramovich and the British government

Clusively to aid the victims of the conflict in Ukraine. They argue that allocating funds to Russians affected by the conflict would be inappropriate given the origins of the war.

This dispute between Abramovich and the British government stems from the frozen assets of several prominent Russians following the invasion of Ukraine by Russian forces in 2022. These assets were frozen as a punitive measure in response to Russia’s aggression.

The decision to freeze Abramovich’s assets came after the British government introduced the so-called “Magnitsky sanctions,” which target individuals responsible for human rights abuses. The freeze was intended to prevent Abramovich from accessing his wealth until an agreement was reached on the release of the funds to support the victims of the war.

Despite this, Abramovich has refused to comply with the British government’s demand to release the funds only for the benefit of the Ukrainian victims. He believes that the money should also be used to aid Russians affected by the conflict.

This dispute highlights the complexity of dealing with assets owned by individuals involved in international conflicts. The British government has taken a firm stand in ensuring that the funds are directed towards assisting those affected by the war in Ukraine. However, Abramovich’s refusal to comply suggests that reaching an agreement will not be straightforward.

At present, it remains uncertain how this conflict between Abramovich and the British government will be resolved. Both parties have strong positions, and the final decision on the allocation of the funds will likely have significant implications for the ongoing crisis in Ukraine.