The UK government is reportedly preparing to take Roman Abramovich to court in an attempt to release over £2 billion from the sale of Chelsea FC for humanitarian aid to Ukraine.

Ministers have grown frustrated with the deadlock over how the funds should be allocated, with Abramovich arguing for broader use of the funds outside Ukraine, while the government pushes for exclusive spending within the country.

Officials remain determined to access the money, which has been frozen in a UK bank account under Abramovich’s company Fordstam since the oligarch sold Chelsea in 2022. The sale, valued at approximately £2.5 billion, was conducted under pressure from the British government following the Russian invasion of Ukraine. At the time, Abramovich faced sanctions but was granted approval for the sale as long as proceeds were directed towards supporting victims of the war.

Negotiations remain ongoing, with the government striving to establish an independent charitable foundation to oversee disbursement of the funds. The proposed foundation has yet to materialise, leaving the money tied up. Ministers have hinted that legal proceedings may be the solution to resolve the stalemate. David Lammy, the Foreign Secretary, recently invited Mike Penrose, former head of Unicef UK and the candidate expected to lead the foundation, to a Whitehall meeting to explore options.

The disagreement between Abramovich and the government centres on whether the funds must be entirely spent in Ukraine. Meanwhile, the estimated £2.7 billion remains unutilised, prompting calls for faster action. Ministers emphasise that the release of this money is critical for aiding Ukraine amid a broader crisis, exacerbated by Donald Trump’s decision to halt US military aid and intelligence sharing with the nation.

Separately, discussions are intensifying within the UK and across Europe on how to handle frozen Russian assets valued at roughly $350 billion. While some officials favour seizing these assets and repurposing them as reparations for Ukraine, others, including France, Germany and parts of the UK Treasury, warn against breaching international law and potentially damaging future foreign investment prospects.

Keir Starmer, Labour Party leader, has faced pressure to expedite the use of the Chelsea funds amidst criticism over his controversial decision to reduce the UK’s aid budget in favour of defence spending. The government has reassured MPs that interest from frozen assets is being used to support Ukraine but acknowledges potential legal hurdles could prolong access to the Chelsea proceeds.

The prospect of Britain engaging in a courtroom battle against Abramovich underscores the challenges of securing funds for Ukraine and raises broader questions regarding the limits of legal authority in cross-border financial disputes. Ministers remain adamant that the money must serve its original purpose in alleviating the humanitarian crisis caused by the war.