Peers have criticized the British government for failing to reach an agreement with former Chelsea owner Roman Abramovich to sell the London football club for £2.5 billion.
Members of the House of Lords European Affairs Committee said it was “incomprehensible” that ministers had failed to spend the money on Ukraine nearly two years after the sale was agreed.
Despite being sanctioned as one of seven “pro-Kremlin” oligarchs in Russia, the government agreed to allow Abramovich to sell Chelsea in 2022 on the condition that the money was used to help victims of the war in Ukraine.
However, the money remains locked in a British bank account amid a dispute between Abramovich and the government over the exact use of the money.
Peter Ricketts, David Cameron’s former national security adviser and chairman of the committee, said: “It is incomprehensible that two years after Abramovich’s agreement with the government it has still not been implemented.”
His report added: “Abramovich’s unfulfilled promises when it came to selling Chelsea Football Club reflect a poor performance by him and the government in failing to push for more binding commitments.
“We urge the administration to use all legal means at its disposal to quickly resolve this impasse so that Ukraine can receive much-needed, promised and long-overdue assistance.”
The British Foreign Office said on Tuesday: “Proceeds from the sale of Chelsea Football Club were frozen in UK bank accounts while independent experts established a foundation to manage and distribute the money.
“A license is then required to transfer the funds to the foundation.”
Abramovich completed the sale of the club to a consortium led by Todd Boley and US private equity firm Clearlake Capital in May 2022.
The funds remained frozen in the bank accounts of Abramovich’s Fordstein company last year amid a dispute over their whereabouts.
People close to Abramovich said the deal stipulated that the money should be donated to “all victims of the conflict in Ukraine and its consequences”, while ministers insisted the money should be used exclusively for humanitarian purposes in Ukraine .
British Foreign Secretary Lord Cameron told the committee at the hearing that the government wanted the money to be used exclusively for humanitarian causes in Ukraine and not “for other causes related to Ukraine or anything else”.
Europe Minister Leo Docherty said there were “divisions” over who should benefit from the fund.
Members of the House of Lords committee insisted the money could only be spent on territory controlled by the Ukrainian government, not parts of Ukraine currently occupied and controlled by Russia.
The 96-page report also recommended that British ministers should start working more closely with their European counterparts in case the United States starts to reduce funding to Ukraine.
U.S. President Joe Biden has asked Congress to pass an additional $61 billion in aid to the country to aid the war effort, but Republicans have refused to approve the plan unless Democrats agree to pass a bill imposing strict border controls, including allowing work to resume on a border wall with Mexico.
Donald Trump says he will push for peace between Russia and Ukraine if re-elected as president later this year, with Ukrainians concerned the deal would come at their expense.
The House of Lords report warned: “In the event of a future change in policy by the US government, it will be particularly important for the UK to work closely with the EU to ensure that adequate military support to Ukraine continues to be provided.”
