Carmichael calls for release of £2.5bn funds from Chelsea FC sale promised to Ukraine

Orkney and Shetland MP, Alistair Carmichael, has called on the Prime Minister to act on £2.5bn in funds generated from the sale of Chelsea Football Club in 2022, which had been pledged to humanitarian aid in Ukraine but remains “locked up” according to a legal advisor. 

Speaking during a statement on Ukraine by the Prime Minister on Monday evening in Parliament, Mr Carmichael highlighted revelations from Lyra Nightingale, a legal adviser at Redress who said that the funds remained unused and there had been “no clear reason from the Government as to why that is so”.

Roman Abramovich announced the sale of Chelsea in March 2022 amid calls for him to sanctioned following Russia’s full-scale invasion of Ukraine. Mr Abramovich pledged to divert all proceeds from the sale of the club to a foundation to benefit victims of the war.

Speaking in the House, Mr Carmichael said:

“Three years ago, the sale of Chelsea football club realised £2.5 billion, which was to be used for the benefit of Ukraine. Today, that money remains frozen, and as Lyra Nightingale of Redress said this morning, there is a total lack of transparency about who has it and when it is going to be released. Can the Prime Minister tell the House when that money will be released for its intended purpose—to help the people of Ukraine?”

Responding, the Prime Minister Keir Starmer said:

“The whole issue of assets and frozen assets is complicated, but I agree with the sentiment across the House: it is time to look at what options might be available. I do not think we should do that on our own; I think it needs to be done in conjunction with other countries. It is fiendishly complicated, which is why it has not been done so far.”

Reacting after the exchange, Mr Carmichael said:

“That the issues around frozen Russian assets are complicated is not in doubt but that cannot be a bar to action. We need to be pulling every lever we have to help Ukraine, target Russia’s economy and get our own defences into shape. Now is the time to make a plan for frozen assets with our allies – and put it into action.”