The UK government is contemplating legal action against Russian oligarch Roman Abramovich in a bid to access more than £2 billion from the sale of Chelsea FC, with the intention of directing the funds towards humanitarian aid in Ukraine.

This decision comes as officials express growing frustration over the lack of resolution in negotiations with Abramovich regarding the allocation of the proceeds from the sale, which was completed under duress following the Russian invasion of Ukraine in 2022.

Amidst halted discussions, government representatives have indicated that they may have to resort to the courts to resolve their differences with Abramovich.

One source noted, "There is a fundamental disagreement with Abramovich himself over where the money can be spent, and it seems the law is going to be the only way to resolve that."

A spokesperson for the Foreign Office stated, "This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible.

The proceeds are currently frozen in a UK bank account while a new independent foundation is established to manage and distribute the money."

The British government issued a license for Abramovich to sell Chelsea, with conditions that the sale proceeds be used to support victims of the Ukraine conflict.

The funds, currently estimated at approximately £2.7 billion, have been held in a UK account managed by Fordstam, a company linked to Abramovich.

Central to the ongoing negotiations is a disagreement over whether the funds should exclusively support humanitarian efforts in Ukraine or if they can be allocated to projects beyond its borders.

The establishment of a foundation, overseen by Mike Penrose, former head of Unicef UK, has been promised, but not yet executed.

The Labour Party leader, Keir Starmer, now faces pressure to facilitate the disbursement of the funds, particularly following recent cuts to the UK’s aid budget, which have redirected resources towards defense spending.

Labour MP David Taylor emphasized the urgency of accessing the Chelsea funds for humanitarian aid, arguing it could potentially free resources for other development aid needs.

The House of Lords European Affairs Committee previously characterized the delay in utilizing these funds as "incomprehensible." In light of these delays, Foreign Secretary David Lammy has reportedly engaged Penrose for discussions on the complexities surrounding the release of the funds.

Legal experts suggest that pursuing a court case may be necessary to navigate the stalemate, although no formal decision has been made.

Any action would likely need the consensus of Chancellor Rachel Reeves and other senior officials.

This matter has yet to reach the Attorney General, Richard Hermer, who has faced some criticism for delays in governmental decision-making.

In addition to the funds from Chelsea FC, discussions surrounding the broader context of approximately $350 billion in frozen Russian assets across Europe are ongoing.

Lammy has advocated for utilizing these assets to provide additional support for Ukraine, though there are legal and political concerns regarding such actions, particularly as both France and Germany have expressed reluctance to breach sovereign asset protections.

The UK Treasury shares these concerns, emphasizing that seizing these assets could deter future overseas investments.

While some officials believe a legal challenge could be crafted to argue that these are proceeds of crime – thus eligible for reparations to Ukraine – the legal framework for such claims remains largely untested and would likely result in a protracted court battle.

Starmer has reiterated in the Commons that the government is currently utilizing the interest accruing from these assets to assist Ukraine and is exploring further avenues for financial support.