The prime minister said Russian oligarch Roman Abramovich must “pay money now or face court action” to Ukraine war victims.
Mr Abramovich, the former owner of Chelsea Football Club, has pledged to use the £2.5 billion raised from the sale of the club in 2022 to help victims of Russia’s invasion of Ukraine.
But the release of the funds, currently frozen in UK bank accounts, has been delayed due to a standoff over exactly how to use them.
The government wants the money to be used for humanitarian aid, but Mr Abramovich has insisted the money should be used for “all victims of war”, meaning Russians could also benefit.
The oligarch cannot access the funds due to British sanctions, but the proceeds from the sale of Chelsea are still legally his.
A government spokesman said: “If Prime Minister Abramovich does not act quickly, our government is prepared to go to court to enforce that promise if necessary.”
They said the fund will “strengthen frontline capacity, enhance protection for the most vulnerable, and support sustainable solutions that will help Ukraine transition from crisis response to long-term resilience.”
“The impact an additional £2.5 billion could have on the Ukrainian people cannot be overstated.”
Abramovich’s spokesman declined to comment.
In the Commons, Sir Keir Starmer said Britain had “issued permission to transfer £2.5 billion from the sale of Chelsea Football Club, which has been frozen from 2022”.
Sir Keir said: “My message to Abramovich is clear: the clock is ticking.
“Honor your promises and pay now, or we are ready to go to court and make sure all the money goes to the people whose lives have been torn apart by Putin’s illegal war.”
The Treasury Department said that under the terms of the permit, the funds must be used for “humanitarian purposes” in Ukraine and cannot benefit Mr. Abramovich or any other sanctioned individual.
The government first threatened to sue Mr Abramovich last June.
British Prime Minister Rachel Reeves said: “It is unacceptable that more than £2.5 billion owed to the Ukrainian people remains frozen in UK bank accounts.”
Abramovich, a Russian billionaire who made his fortune in the oil and gas sector, has been granted special permission to sell Chelsea if he can prove he would not profit from the sale following Russia’s invasion of Ukraine.
He was suspected of having a close relationship with Russian President Vladimir Putin, but he denied this.
It is understood Mr Abramovich has 90 days to act before the UK takes legal action.
EU leaders on Thursday will consider a proposal to use proceeds from frozen Russian assets to support Ukraine’s massive budget and defense needs. Russia vehemently opposed this proposal.
