Abramovich to Defy Starmer and Spend Chelsea Sale Proceeds on War Victims Outside Ukraine

Roman Abramovich’s plan to spend Chelsea sale proceeds on war victims beyond Ukraine is seeking registration as a charity in defiance of Sir Keir Starmer.

An application to the Charity Commission this week will detail Abramovich’s plan to spend the £2.35bn proceeds on war victims “anywhere” rather than only in Ukraine.

The move will rattle ministers threatening legal action against Abramovich as the Government has not given its permission for the charity to be officially set up.

The Todd Boehly-led Clearlake consortium bought Chelsea in May 2022 as Abramovich was sanctioned over alleged links to Russian president Vladimir Putin, but funds have been in limbo since.

Now, in an attempt to finally break the deadlock, the foundation is seeking registration regardless  of Whitehall consent by Mike Penrose, a former Unicef UK chief executive.

Penrose has long had legal undertakings in place with causes in mind, while Jan Egeland, a senior Norwegian diplomat who once advised Kofi Annan at the United Nations, was initially brought in as an interim chairman of the foundation.

The charity will have an official remit of being “for the public benefit, the saving of lives and relief of suffering through the provision of humanitarian assistance to people in need anywhere in the world who are victims of conflict, by the provision of grant financing (or other suitable support) to organisations able to provide relief, humanitarian assistance, post-conflict support and/or reconstruction.”

It remains to be seen whether the Government will make any emergency new moves to block its registration.

Regardless, the money will not be spent yet as the account is frozen and tied up in a dispute between Abramovich and Jersey.

A fallout with the Government over the remit of the charity has played a key part in an almost four-year delay in releasing the unprecedented donation by an individual to such causes.

Those involved insist the details to be registered this week are aligned with Mr Abramovich’s legal position with the Government throughout.

Mr Penrose said in a statement: “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. I am confident in the strength of the board I have assembled, which brings together individuals with significant experience in humanitarian work across the globe.

“The application will be submitted this week. The foundation’s objectives are aligned with those set out in the deed of undertaking, and we are hopeful that, once the relevant legal matters are resolved, the foundation will be in a position to receive a donation.”

A representative of Mr Abramovich added: “Our understanding is that a foundation is currently in the process of being registered, which we welcome. Mr Abramovich maintains his intention to donate funds to humanitarian causes once the relevant legal obstacles are resolved.”

Sources close to talks maintain the new charity remit is in line with a deed of undertaking which had a “broader wording” than his initial pledge on Chelsea’s website on March 2, 2022. “The foundation will be for the benefit of all victims of the war in Ukraine,” Abramovich said at the time. “This includes providing critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery.”

Major humanitarian charities immediately expressed support for the new charity being launched. Alison Griffin, head of conflict and humanitarian campaigns at Save the Children UK, said in a statement: “This money has been sitting gathering dust (and significant interest) for almost four years now, so it is heartening to hear we may be closer to seeing at least some of that money being spent supporting those impacted by the war.

“However, the bulk of the Chelsea Fund is still likely to be subject to legal wrangling, potentially further delaying something that should have been solved years ago. We urge all parties to put aside their differences and focus on identifying a solution for those who need the money the most, including children whose childhoods have been turned upside down by this conflict. Anything else would be a betrayal of those affected by the war, wherever they are in the world.”

However, successive Governments have since insisted they will only approve the fund’s release on the basis of it being spent within Ukraine’s borders. Both sides accuse each other of going back on prior commitments.

The Prime Minister intervened in recent months, threatening court action for a second time. Ministers had given Abramovich a March 17 deadline to release funds for Ukraine war victims.

But Abramovich’s lawyers have since told the Government that the proceeds are “wholly” his and he is ready to fight confiscation efforts.

Following that letter from his lawyers, the Government issued a statement last week saying it will now initiate “further steps” to seize the funds.

However, behind-the-scenes dialogue has been less aggressive. Ministers have privately expressed a willingness to meet with Abramovich’s legal team to discuss the situation.

Regardless of the charity being set up, much still depends on Abramovich’s fight with the Royal Court of Jersey over a formal freezing order on $7bn (£5.3bn) worth of his assets in April 2022, a month after his pledge. The attorney general of Jersey said at the time that Abramovich was a suspect in a criminal investigation, which has prompted a lengthy and as yet unresolved legal battle, launched by the Russian to clear his name.

The situation has complicated efforts to release the Chelsea sale fund as Abramovich’s UK-registered vehicle, Fordstam, which received the £2.35bn fund, has an outstanding £1.5bn debt to Camberley International Investments, the Jersey parent company that was hit with an assets freeze.

Sources close to discussions maintain that this debt will not affect the total amount due to war victims.

Source: The Telegraph