A proposal to shift Roman Abramovich’s £2.34 billion Chelsea sale fund to Israel instead of Ukraine was discussed following the Hamas terrorist attack, Telegraph Sport can reveal.
Britain is said to have rejected the suggestion at a high level, with ministers believing it was a move by the sanctioned oligarch to avoid conviction in Russia.
Abramovich for the first time pledged proceeds for “all Ukrainian war victims” after putting Chelsea up for sale on March 2 last year, eight days before sanctions were imposed over alleged links to Vladimir Putin.
However, as the vast fund remained untouched in a frozen account, with Britain and Europe insisting that it be spent solely within Ukrainian borders, private proposals were made for alternative proposals for its assets.
Sources close to the talks offer conflicting views on whether the idea of spending the money in Israel was suggested by Abramovich himself or by the country, where he was granted citizenship in 2018.
An insider with good knowledge of Britain’s position says the possible censure in Moscow explains why the fund remains in limbo after 18 months in a frozen London bank account. “Abramovich does not want Russia to be shamed for spending money in Ukraine,” the insider said of the current standoff. In addition to potentially using the money for humanitarian causes in Israel after October 7, it was claimed that Abramovich also raised the option of helping the victims of the February earthquake in Turkey, with which he also had recent ties.
Other sources say Israel led discussions about the plan and that Abramovich had no knowledge of it. “Such formal requests do not exist,” said another figure close to the talks.
That person, speaking on condition of anonymity, added: “I know that Israelis have asked during state visits to Britain, because Roman is such a big donor in Israel, whether they would consider licensing all his assets , and not just for Chelsea. , to donate to the reconstruction of Israel.”
The money would be intended for expenditure on humanitarian causes in southern Israel. “I understand that the British government has given Israel a firm no,” the source added.
Before Abramovich was sanctioned last year, Abramovich’s ties with Israel had grown increasingly close. One project signed prior to Russia’s war against Ukraine was to finance the creation of a forest in southern Israel dedicated to Lithuanian Jews who were victims of the Holocaust.
Reports on Abramovich’s family background in Lithuania are fragmentary. However, it is known that his parents and relatives were from the country, but left for Siberia during the Soviet occupation in 1941.
Largest humanitarian donation in history
The sudden proposal to use Chelsea funds for things unrelated to Ukraine illustrates how far the government is from signing off on the largest humanitarian donation in history.
Despite the sale of the club taking place entirely within British jurisdiction, ministers signed a unilateral declaration with the European Commission in May stating that the money would be spent “exclusively” within Ukraine. The move threw the humanitarian sector into disarray when Mike Penrose, a former British top executive at Unicef, was brought in to set up an independent foundation on the basis that it would be spent on “Ukraine and its consequences”.
Penrose has set up legal obligations to ensure that the money cannot fall back into Abramovich’s hands. The government will receive input from the board and Jan Egeland, a senior Norwegian diplomat who once advised Kofi Annan at the United Nations, has been appointed interim chairman of the foundation.
However, Lord Cameron’s recent appointment as Foreign Secretary has led to renewed efforts to release the funds in line with Penrose’s plan. “The unilateral declaration can be withdrawn at any time,” Penrose explains. “This is a former Prime Minister who increased Britain’s standing in humanitarian work. Its past partnerships have made Britain arguably the world’s leading humanitarian nation. I look forward to speaking to him when he returns from his first trips, and I am hopeful that he will have the vision to make this work.”
That call was backed by James Deneslow, head of the conflict team at Save the Children, who told Telegraph Sport: “Now that a new Foreign Secretary has been appointed, we will continue to advocate for the use of this huge amount of sanctioned money to humanitarian consequences of the war in Ukraine.
“As we have maintained, the funds must be released and made available to all victims of the war in Ukraine – whether that is within Ukraine’s geographical borders, supporting Ukrainian refugees in Europe or financing food programs in Eastern Europe. Africa, where food insecurity has increased. made worse by the war.”
The permit granted by the UK government, which sets out the next stage in this process, expires on November 30. This has been extended by joint agreement in the past and it is almost certain that it will be extended again.
Penrose said he has not yet worked directly with Cameron since being appointed foreign secretary, but a meeting would be arranged in the coming weeks.
The disagreement over the foundation’s objectives predates the sale of Chelsea to a consortium led by American businessman Todd Boehly, which was completed on May 30 last year. Sources close to the process said Abramovich had signed a commitment agreement with the government stating that the charity would benefit “Ukraine and its consequences.”
However, in a unilateral statement last year, the government said: “The Ministry of Finance will only issue a permit guaranteeing that such proceeds are used exclusively for humanitarian purposes in Ukraine.” Saleh Saeed, from the Disasters Emergency Committee, also supported Penrose’s position that the humanitarian need extends beyond Ukraine’s borders.
Kate Cavalier, 44, who has been hosting a family of Ukrainians in her home in England for 15 months, also called on Cameron to intervene.
The government rejects any suggestion it is sitting on the money, with multiple sources telling Telegraph Sport they believe the agreement from the start was to only spend the money within Ukraine. An insider with knowledge of the talks said they thought it unlikely that Cameron would take a new government position, insisting that “this money was always intended for Ukraine”.