Roman Abramovich faces UK lawsuit over £2.5b Chelsea sale

The UK government is threatening legal action against Roman Abramovich, the former owner of Chelsea Football Club, in a high-stakes standoff over the future of £2.5 billion ($3.4 billion) frozen in a UK bank account.

Abramovich was forced to sell Chelsea after being sanctioned by the government over his alleged close ties to the Russian president.

The sale marked the end of Abramovich's successful but at the same time controversial career at Chelsea, during which the club won every major European and domestic trophy, including the Premier League, FA Cup, League Cup, Champions League and Europa League.

In this sports article that goes well beyond the sports side of it all, we explore the legal, political, and financial dimensions of the historical sale. Read on:

UK government insists funds go to Ukraine

The £2.5 billion remains untouched and cannot be accessed without approval from the Office of Financial Sanctions Implementation (OFSI), a branch of the Treasury tasked with implementing sanctions.

In 2023, representatives of Abramovich stated that they believed the then-government had altered the terms under which the money was intended to be distributed, tightening the conditions under which it could be spent. The current Labour government has maintained the position of the previous administration.

UK urged to tighten Ukraine aid rules

Lord Cameron, the foreign secretary, told the committee during its hearings that the government wanted the money to be spent specifically on humanitarian causes in Ukraine and "not on other causes linked to Ukraine or anything else". Members of the Lords committee insisted that the money should be spent only in territories controlled by the Ukrainian government rather than parts of Ukraine currently occupied and controlled by Russia.

The 96-page report also recommends that British ministers should start working more closely with their European counterparts in case the U.S. begins to reduce funding to Ukraine. The Lords' report warns: "Close UK-EU cooperation to ensure a continued supply of sufficient military support for Ukraine would be of particular importance in the case of a policy change by a future US administration."

In a joint statement, Chancellor Rachel Reeves and Foreign Secretary David Lammy said: "While the door for negotiations will remain open, we are fully prepared to take this to court if required."

This case reminds us that football, being the world's most popular sport, has an influence that extends far beyond the pitch and is entwined with global business and governance.

End of an era with hopes for one last goodbye

Despite his departure from the club, Abramovich wants to return to Stamford Bridge for a 'proper goodbye'. His last known media interview was in 2021. However, in the book "Sanctioned" by Nick Purewal, Abramovich mentioned a possible return to football and Chelsea.

"Perhaps one day there would be a situation where I could attend a match and say a proper goodbye, but nothing more than that. I don’t have any interest in any role in a football club. I might be able to help with academics and with the youngsters. But as for ownership or a professional role at a club, I am done with that in this lifetime,” Abramovic added.

Abramovich stands his ground amid accusations

Though Abramovich continues to face scrutiny and sanctions, he has made it clear he won’t be deterred by political pressure. Referring to the criticism, he cited an old Russian proverb: “The dogs bark, but the caravan keeps moving.”

The outcome of the legal dispute will not only affect how Abramovich's fortune is spent but also how sanctioned assets are handled in future conflicts. For now, the £2.5 billion remains caught in a political and moral tug-of-war over how best to aid those suffering from the war in Ukraine.

The man who made Chelsea a giant

Born in 1966 in Saratov, Russia, Roman Arkadyevich Abramovich is a billionaire businessman and politician. Best known as the former owner of Chelsea, there’s more to Abramovich than football.

As the primary owner of the private investment firm Millhouse, he amassed vast wealth through a mix of oil, industry, and strategic political alliances during Russia’s chaotic privatisation era of the 1990s. He once served as governor of Russia's remote Chukotka region and built a reputation for philanthropy in both Russia and Israel.

Abramovich has reportedly donated more money to charity than any other living Russian. Between 2009 and 2013, he donated more than US$2.5 billion to build schools, hospitals and infrastructure. He also funds an extended programme in Israel that brings Jewish and Arab children together in football coaching sessions.