The Prime Minister has said Russian oligarch Roman Abramovich must “pay up now” to victims of the war in Ukraine or face court action.
Mr Abramovich, the former owner of Chelsea Football Club, pledged in 2022 that money from the sale of the club would be used to benefit victims of the Russian invasion of Ukraine.
The money has been frozen in a British bank account since the sale after he was sanctioned following Russia’s invasion of Ukraine.
But there has been a delay in releasing the funds due to a disagreement between the UK government and his lawyers over how the money should be spent in Ukraine.
The government wants the funds to be used for humanitarian purposes, but Mr Abramovich has insisted they be used for “all victims of the war”, meaning that Russians would also benefit.
The Treasury said that under the terms of the licence, the money must go to “humanitarian causes” in Ukraine and cannot benefit Mr Abramovich or any other sanctioned individual.
Speaking in the Commons, Sir Keir Starmer said the UK had issued a licence “to transfer £2.5bn from the sale of Chelsea Football Club that’s been frozen since 2022.”
Sir Keir said: “My message to Abramovich is clear: the clock is ticking.
“Honour the commitment that you made and pay up now, and if you don’t we’re prepared to go to court and ensure that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
The government first threatened to sue Mr Abramovich in June.
Chancellor Rachel Reeves said; “It is unacceptable that more than £2.5bn of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account.”
Mr Abramovich – a Russian billionaire who made his fortune in oil and gas – was granted a special licence to sell Chelsea following Russia’s invasion of Ukraine, providing he could prove he would not benefit from the sale.
He is alleged to have strong ties to Russian President Vladimir Putin, something he has denied.
He cannot access the £2.5bn sale proceeds under UK sanctions but the money still legally belongs to him.
On Thursday, EU leaders are set to review proposals to use proceeds from frozen Russian assets to support Ukraine’s huge budget and defence needs. Russia has fiercely opposed the proposals.