Roman Abramovich, the Russian billionaire and former owner of Chelsea Football Club, is moving to register a new charity foundation to distribute the frozen proceeds from the club’s 2022 sale to war victims worldwide rather than only in Ukraine, according to The Telegraph on April 1.
The fund has remained in limbo since the Todd Boehly-led Clearlake consortium bought Chelsea in May 2022 for about the $3.14 billion after Abramovich was sanctioned over alleged ties to the Russian leader, Vladimir Putin.
The UK government has insisted the money should be used only for humanitarian purposes inside Ukraine, while Abramovich’s side has maintained a broader interpretation.
In an effort to break the deadlock, the foundation is being prepared for registration with the Charity Commission by Mike Penrose, the former chief executive of Unicef UK, despite the lack of formal government approval.
Its remit would cover humanitarian aid, post-conflict support, and reconstruction for victims of conflict “anywhere in the world,” though the funds cannot yet be released because the account remains frozen.
Penrose stated, “I can confirm that I am preparing a submission to the Charity Commission to register a new foundation dedicated to supporting victims of conflict worldwide.” He added that the application would be submitted this week and that the foundation’s objectives were aligned with the existing deed of undertaking.
A representative for Abramovich noted that the foundation’s registration was underway and that he still intended to donate the money to humanitarian causes once legal barriers were removed.
The report added that British ministers had recently threatened legal action and set a March 17 deadline for Abramovich to release the money for victims of the war in Ukraine.
The impasse has also sharpened around Abramovich’s effort to move the fund away from an exclusively Ukraine-focused mandate.
The dispute is also linked to a separate legal battle in Jersey, where $7 billion in Abramovich’s assets were frozen in April 2022.
The dispute over the $3.14 billion frozen from Chelsea’s 2022 sale has sharpened after Roman Abramovich sought to widen the beneficiary pool beyond Ukrainian victims of the war.
His proposal covered wounded Russian soldiers, putting him at odds with Britain’s insistence that the money be reserved for humanitarian aid in Ukraine.
British officials rejected that position, noting Abramovich had publicly pledged in 2022 to donate the net proceeds to help Ukrainians affected by Russia’s invasion.
The funds have now remained frozen for more than three years as legal and financial questions continue to stall their transfer, including issues tied to Abramovich-era loans to Chelsea.
The UK government has warned it is prepared to go to court to ensure every penny is ultimately channeled to humanitarian relief for Ukraine.
