By Frank Dalleres
A “disagreement” over how to use the funds is holding up release of the frozen £2.5bn proceeds from the sale of Chelsea by sanctioned oligarch Roman Abramovich, Parliament has been told.
Abramovich said that the proceeds would be used “for the benefit of all victims of the war in Ukraine” when announcing his decision to sell in March 2022.
But more than 18 months on, the UK government is refusing to release the proceeds unless it is guaranteed that the money only goes to Ukrainians in Ukraine, not elsewhere.
“The proceeds from the sale are frozen in a UK bank account,” Europe Minister Leo Docherty told the House of Lords European Affairs Committee on Tuesday.
“We’re now going through a process of independent experts establishing a foundation to manage the money. The key difference… is whether the funds get used in Ukraine or for Ukrainians outside of Ukraine.
“It’s not quick, it’s not easy but we’ve got to ensure this attends to the needs of Ukrainians in Ukraine and not elsewhere.”
Daniel Drake, deputy director of the sanctions taskforce in the Foreign, Commonwealth and Development Office, added: “I think there’s a disagreement between those involved in running this fund and the government.”
Docherty and Drake were then asked by Baroness Anelay whether they thought that Abramovich was using delaying tactics.
“We wouldn’t want to speculate on what the other side is thinking or intending to do. It is ultimately for them to apply for that licence on the grounds that we made clear in our unilateral declaration – for the funds to be spent in Ukraine,” Drake added.
“And after all, the purpose of our sanctions is to remedy the harm that Russia is doing to Ukraine. That’s why we made that clear and that’s what he has not done.”
