British Foreign Secretary David Lammy promises to unblock £2.3 billion (€2.7 billion) of frozen funds from the sale of Chelsea FC by Russian billionaire Roman Abramovich more than two years ago, funds that the British government has frozen and wants to redirect to Ukraine, reports the Financial Times, writes UNN.
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"British Foreign Secretary David Lammy promised to take "action" that could include initiating legal proceedings to unblock £2.3 billion frozen after the sale of Chelsea Football Club by Russian billionaire Roman Abramovich more than two years ago," the publication writes.
As the publication points out, "the funds that the UK government has frozen and wants to redirect to Ukraine have been sitting in a special fund bank account for the past two years, while negotiations on how exactly to use this money have dragged on."
"I am disappointed that this has not happened, that is true, - and that the money needs to be distributed, it needs to be used," Lammy told the Financial Times in Tokyo. He said he is moving to an "action-oriented approach" to try to break the deadlock.
He emphasized that his "first instinct was not litigation," because that path "takes time," although people familiar with his thinking said that going to court to resolve the issue is one of the options on the table. Reaching an agreement with the fund that will be created to manage the cash remains another option.
Although he acknowledged that there are "legal complexities" surrounding this issue, he vowed: "I am determined to see this money go, and I will do everything possible to make it happen."
The UK government's position is that the money should be spent within Ukraine, while the discussed fund - which involves former UNICEF UK CEO Mike Penrose - insists on flexibility in supporting refugees fleeing the war, as FT reported earlier from people familiar with the standoff.
In a statement on Chelsea's website in March 2022 - the same month he was sanctioned by the UK - Abramovich said the fund would be "for the benefit of all victims of the war in Ukraine," including by providing "critically important funds for urgent and immediate needs of victims, as well as supporting long-term recovery efforts."
Lammy's statement came amid the US suspending military aid to Ukraine. Citing the "urgency of the moment" and the need to ramp up efforts to assist Ukraine, he said: "I am closely examining this issue."
The British Foreign Secretary also supported the idea of a new multilateral defense bank this week to help the UK and Europe finance the expansion of their defense.
The country's Foreign Office stated: "This government is doing everything it can to ensure that the proceeds from the sale of Chelsea Football Club reach humanitarian goals in Ukraine as soon as possible. Currently, the proceeds are frozen in a UK bank account while a new independent fund is being established to manage and distribute the money."
"British officials continue to negotiate with representatives of Mr. Abramovich, experts, and international partners, and we will double our efforts to reach a settlement," the statement said.
A representative for Abramovich did not immediately respond to a request for comment.