Roman Abramovich is set to defy Sir Keir Starmer and the UK government and create a charity to distribute the £2.35billion proceeds from Chelsea's sale four years ago. Those funds remain frozen, with the government determined to release the money only if it is to be used within Ukraine. When announcing the sale of the west London club, Abramovich pledged to establish a 'charitable foundation where all net proceeds from the sale will be donated'.
He stated that funds would be allocated for the 'victims of the war in Ukraine', resulting in some controversy. Now, according to the Telegraph, Abramovich has come up with a plan and a foundation is being established by former UNICEF chief executive Mike Penrose. Its objective, however, does not align with the British government's demand and is intended for all victims of conflict rather than exclusively Ukrainian ones.
Abramovich had been given a March 17 deadline to release the funds, though the proceeds are presently beyond the Russian's control. Fordstam, a company controlled by the 59-year-old, had its funds frozen under the sanctions imposed on Abramovich.
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. 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."
The charity's remit will be "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."
The ball is now in the UK Government's court, having previously threatened legal action. Ministers must decide whether to take emergency steps to prevent the charity's registration.
A spokesperson for Abramovich said: "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."
Prime Minister Keir Starmer has previously urged Abramovich to honour his pledge. He told the House of Commons in December: "Honour the commitment you made and pay up now, and if you don't, we are prepared to go to court so every penny reaches those whose lives have been torn apart by Putin's illegal war."