The government has repeated a pledge to “double down” on its efforts after being urged to release billions of pounds generated from the sale of Chelsea football club nearly three years ago.
In a letter criticising the prime minister Keir Starmer’s recent decision to cut aid spending, UK NGOs called for the around £2.5bn of proceeds generated by the Chelsea FC sale to fill the gap.
In March 2022, Russian billionaire Roman Abramovich announced that he was selling the club after being sanctioned by the UK government, and pledged to donate the proceeds to a new foundation set up to help victims of the war in Ukraine.
However, the money, which could create the second wealthiest charity in Britain, remains frozen in a UK bank account.
Proceeds remain frozen
This week’s letter signed by more than 100 NGOs renewed calls for the funds to be released following the UK’s cut to overseas development assistance and the US government’s freeze on USAID spending.
“The proceeds of the sale of Chelsea FC, which would be worth billions of pounds, should be made available to support humanitarian projects in Ukraine and in other communities impacted by the war to help try and plug the gap left by the US and now your government,” it reads.
In response, a spokesperson from the Foreign, Commonwealth & Development Office said: “This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible.
“The proceeds are currently frozen in a UK bank account while a new independent foundation is established to manage and distribute the money.
“UK officials continue to hold discussions with Mr Abramovich’s representatives, experts and international partners, and we will double down on our efforts to reach a resolution.”
The Charity Commission, meanwhile, confirmed that it has yet to receive any application to set up an independent foundation to manage the funds.
New Philanthropy Capital policy manager James Somerville said: “People are understandably impatient for this to be resolved, or at least to learn more about the specific reasons for delay.
“But the interest in these funds also underlines the need for a longer-term, more sustainable solution for funding aid built on a genuine partnership between government and the impact sector.”
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