In a scathing indictment of bureaucratic inertia, the House of Lords has laid bare the astonishing inaction of the UK government regarding the utilization of frozen assets from Roman Abramovich‘s high-profile sale of Chelsea Football Club. Abramovich, a billionaire with a diverse portfolio of citizenships (Russian, Israeli, and Portuguese) and a net worth hovering around the $9 billion mark, was compelled to offload the prestigious football club in the wake of the Ukraine invasion.
Roman Abramovich was pledging a whopping 2.5 billion pounds ($3.2 billion) from the sale to aid Ukraine—a promise that, embarrassingly, remains unfulfilled nearly two years on.
The saga of the unspent funds stagnating in a UK bank account due to a deadlock between the British authorities and Abramovich over their deployment has ignited a firestorm of criticism. The House of Lords’ report doesn’t mince words, branding the stalemate as “incomprehensible” and a dismal reflection on both Abramovich and the UK government’s inability to cement a firmer agreement to expedite the aid to Ukraine.
The Committee find it incomprehensible that the promise made by sanctioned Russian businessman Roman Abramovich to use the proceeds from the sale of Chelsea FC to support Ukraine remains unfulfilled, and that the assets remain frozen. This reflects poorly on Mr Abramovich and the Government for failing to enter into a more binding commitment.
U.K.’s House of Lords report
The spotlight on Abramovich has been anything but flattering. Sanctioned in the wake of the full-scale invasion of Ukraine in February 2022, the oligarch’s attempts to disentangle himself from the sanctions list have hit a wall. His appeal in the EU court in Brussels, where he argued his detachment from the Kremlin’s machinations and the non-involvement of his business dealings in the conflict, was unceremoniously dismissed in December 2023.
Amidst this financial tug-of-war, Abramovich’s foray into peace negotiations between Russia and Ukraine adds layers to his complex narrative. Despite reports of his involvement in talks in Kyiv and a subsequent rendezvous with Saudi Crown Prince Mohammed bin Salman aimed at brokering a prisoner exchange, the shadow of the Chelsea FC sale proceeds looms large.
The Lords’ Committee’s frustration is palpable as it calls on the government to leverage “all available legal levers” to break the deadlock, stressing the urgency of delivering the long-promised and desperately needed aid to Ukraine. This debacle not only tarnishes Abramovich’s image but also casts a long shadow over the UK’s handling of sanctioned assets, raising critical questions about the effectiveness and moral compass of its financial governance amidst an international crisis.
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