Roman Abramovich has been ordered to hand Kiev the proceeds from the sale of Chelsea football club

The British government has warned it could sue Russian billionaire Roman Abramovich if he fails to approve the transfer of Pound 2.5 billion ($3.4 billion) to Ukraine from the sale of Chelsea football club. The threat came from Chancellor of the Exchequer Rachel Reeves and Foreign Secretary David Lammy in a joint statement on Monday.

Abramovich sold Chelsea to a consortium of American investors in May 2022, shortly after the escalation of the Ukraine conflict and after being sanctioned by London over alleged Kremlin ties. The tycoon, who denied the accusations and has acted as a mediator between Moscow and Kiev on several occasions, intended the proceeds to be used to help victims of the Ukraine conflict on both sides. London, however, has been pushing for the money to go solely to Ukraine, ignoring the businessman's wishes.

"The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine," the statement from Reeves and Lammy read. They added that the UK is "deeply frustrated" that it has been unable to reach an agreement with Abramovich more than three years after the sale.

"While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible," they stated.

The money remains frozen in a UK bank account, pending Foreign Office license for its release abroad. Due to sanctions, Abramovich cannot access the funds but remains their legal owner and must approve any distribution.

UK government sources told The Guardian in March that a "fundamental disagreement" exists between London and Abramovich over the allocation of the funds. They said officials had held multiple discussions with the businessman's representatives, legal advisers, and international partners, and are determined to resolve the issue, including through legal action.

Abramovich's representatives did not respond to media requests for comment.

Western nations imposed sweeping sanctions on Russia after the Ukraine conflict escalated in 2022, freezing over $300 billion of its international reserves and seizing assets from individuals accused of profiting from the conflict. Western officials have repeatedly suggested using the frozen assets to fund Ukraine's reconstruction.

READ MORE: EU state to tap frozen Russian funds to send arms to Ukraine

Moscow has condemned the freezing of its assets, denouncing the asset seizure proposals as "outright theft" and warning of reciprocal action against Western holdings in Russia. A number of countries, including in the West, have also warned that confiscating frozen Russian funds would violate international law, set a dangerous precedent, and damage the credibility of Western financial institutions.

(RT.com)