The government is preparing to sue Abramovich after he missed the deadline to release $2.5 billion from the sale of Chelsea

The UK government is preparing a potential court case against former Chelsea owner Roman Abramovich after he missed a deadline to release the £2.5 billion raised from the sale of the club.

In mid-December Sir Keir Starmer announced that the Treasury was issuing a license for the transfer of frozen funds to a foundation to be used to provide aid in Ukraine.

At that time the Russian businessman was warned that if he did not do so within 90 days, the government would take him to UK court.

Government officials said they would now take steps to prepare for a possible court case and write to Mr. Abramovich’s lawyers to warn them about it.

A government spokesperson said, “We gave Roman Abramovich one last chance to do the right thing. Once again, he has failed to deliver his donation.

“We will now take additional measures to ensure the fulfilment of the promises made during the sale of Chelsea.”

Mr Abramovich rose to prominence in the UK when he bought Chelsea Football Club in 2003, spending billions of dollars on the club and winning numerous trophies, including multiple Premier League titles and the Champions League.

He made billions of dollars in the post-Soviet Russian era and is said to be an ally of Vladimir Putin.

However, the Boris Johnson government banned Mr Abramovich in 2022 due to his ties to the Russian leader.

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As part of the sanctions, he was forced to sell his stake in Chelsea, and he announced that the withheld proceeds would be earmarked “for the benefit of all victims of the war in Ukraine”, including “providing vital funding for the immediate and immediate needs of victims, as well as supporting the long-term work of recovery”.

But the £2.5bn received for the sale has since languished in deep freeze, unavailable to support Kyiv and held in an inaccessible account.