Abramovich defies Starmer with new foundation plan for £2.4bn Chelsea funds
Roman Abramovich has responded to Keir Starmer’s legal threats to claim the £2.4bn sum raised from selling Chelsea by taking steps to set up a new foundation.
An application for the creation of the Foundation for Victims of Conflict will be made this week with the Charity Commission, without the permission of the government.
No10 has previously said it would pursue legal steps to unlock over £2bn in proceeds from the sale of Chelsea that is currently frozen in a Fordstam Ltd bank account following sanctions on the Russian following Vladimir Putin’s invasion of Ukraine.
His lawyers state that it “appears to be treating this proposed donation [to the foundation] as a form of punitive measure”.
A spokesman for Abramovich told The Times: “Our understanding is that a foundation is 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.”
The stalemate stems from where the proceeds will go, with the government insisting the recipients should be victims of the war in Ukraine while Abramovich believes “all victims” should be beneficiaries, opening the door for Russians to get a payout.
Abramovich tale takes turn
Abramovich is now taking steps to form his own foundation, which will be run by former Unicef executive Mike Penrose.
Penrose said: “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.”
Abramovich, who denies allegations that he is an ally of Putin, is also facing legal obstacles in Jersey, where the Russian is looking to recover more than £5bn in frozen assets.
Last month a government official said: “We gave Roman Abramovich his last chance to do the right thing. Once again, he has failed to make the donation he committed to.
“We will now take further steps to ensure that the promise he made at the time of the Chelsea sale is kept.”