The Government is once again facing pressure to resolve the stalemate over funds from the sale of Chelsea FC, while officials are now set to explore the possibility of housing Ukrainian refugees in properties owned by sanctioned Russian oligarch Roman Abramovich.
A foreign office minister has confirmed that the proposal will be examined, following suggestions raised in Westminster. Labour frontbencher Baroness Chapman of Darlington described the idea as “interesting” and committed to referring it to her department for further consideration by civil servants.
The discussion emerged after Foreign Secretary David Lammy urged the UK and its European allies to transition from freezing Russian assets to actively seizing them, with the aim of using the proceeds to aid Ukraine in both its war efforts and reconstruction.
Parliamentary debate on using empty properties
Raising the issue in Parliament, Labour peer Lord Brooke of Alverthorpe pointed out the vast number of frozen assets in the form of properties, many of which remain unoccupied.
He stated: “Many of the assets which are frozen are properties. Many of those properties are empty. I look across the Thames and see a great building where Abramovich had floors in the building.”
He then questioned whether the Government would consider repurposing these vacant properties to house Ukrainian refugees and support immigration efforts.
In response, Lady Chapman welcomed the proposal and confirmed it would be referred for further examination. “That’s an interesting idea. That is the first time I have heard that particular suggestion. I will take that back and ask for that to be explored by officials,” she said.
However, she cautioned that any action taken must be legally sound and in coordination with international partners.
“It is important, though, that whatever we do is legally sound and is done collaboratively with our partners and allies. Whatever we do, we have to be acting within the law, because that’s part of our argument with what Russia has done—it was a breach of international law, and we take our obligations very seriously,” she added.
Calls for urgent resolution on chelsea FC funds
Alongside the discussion on housing, the Government is facing renewed calls to resolve the deadlock surrounding the funds generated from the sale of Chelsea FC.
Abramovich sold the club in 2022 after facing sanctions in the wake of Russia’s full-scale invasion of Ukraine. At the time, he pledged that the entirety of the proceeds—amounting to £2.5 billion—would be allocated to a foundation aimed at supporting victims of the war.
However, despite the sale being completed in May 2022 at a record-breaking price for a sports team, the funds remain frozen in a UK bank account. The House of Lords European Affairs Committee has previously reported that disagreements over the distribution of the funds have prevented any progress.
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Labour former minister Lord Foulkes of Cumnock has now written to the Chancellor, urging the Government to unfreeze the funds and send them to Ukraine, where they are desperately needed.
“I think if the Government was able to take quick action on this, it would be welcome on all sides of the House,” he said.
Lady Chapman commended Lord Foulkes for his persistence on the matter and reassured him that the Government was moving as quickly as possible.
“May I commend him for the tenacity with which he approaches this and every other issue. He is right to do so. He must keep pressing the Government on this. We are moving as fast as we can, but it is good to have the encouragement and support of members of this House,” she said.
Next steps and political considerations
The Government now faces increasing scrutiny over both the use of Russian assets and the allocation of Chelsea FC’s sale proceeds. While ministers have committed to exploring the idea of using Abramovich’s properties for Ukrainian refugees, they also face growing demands to expedite the release of funds intended to support Ukraine’s humanitarian and reconstruction needs.
With mounting pressure from MPs and peers across political divides, the Government may soon be compelled to take decisive action on both fronts. Whether legal and diplomatic barriers will hinder these efforts remains to be seen.
