The European Union is effectively blocking billions of pounds in aid to Ukraine following the sale of Chelsea by Russian oligarch Roman Abramovich, who had pledged to use the proceeds “for the benefit of all victims of the war in Ukraine”. Under new demands by the EU stating that the profits must be spent directly in Ukraine, as opposed to aiding all those affected by the conflict both inside and out of the affected area, almost £2.3billion is currently frozen in a bank account belonging to Mr Abramovich’s seized Fordstam company.

Humanitarian experts have warned that the EU is delaying vital funds intended for Ukraine just a week after hundreds of thousands were displaced by the destruction of the Kakhovka dam in Kherson Oblast, the Telegraph reports.

When Roman Abramovich sold the football club almost 13 months ago, he stood accused of having “clear connections” to Vladimir Putin’s regime.

The UK Government, keen to prevent a Russian oligarch benefiting from the sale of a British football club, in turn seized his assets, while Mr Abramovich promised to use the Chelsea profits to support the “long-term work of recovery” in Ukraine.

An independent foundation was set up to administer the funds, established by Mike Penrose, a former Unicef UK chief executive.

Plans were then made to fund several projects covering health, housing, education and agriculture, which have been earmarked for immediate action once a final agreement is reached.

As Mr Abramovich procured a Portuguese passport in 2021, prior to the sale of Chelsea, the UK Government enlisted the help of the European Union to help administer the funds.

But the bloc quickly demanded that the profits be used only directly in Ukraine, which forced the funds to be withheld while new paths of charity were established.

Independent experts are now having to create another foundation, it appears, “to manage and distribute the money for humanitarian purposes in Ukraine”, a Government spokeswoman said.

They added that “a licence application will then need to be made to move the funds to the foundation”.

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The red tape has ensured that the huge sums remain unused in a frozen account while Ukrainians face relentless Russian missile bombardments and treacherous living conditions.

The UK has not fought the demands from the bloc, rather it has welcomed them, in a surprise to some close to the talks given the post-Brexit landscape.

UK Prime Minister Rishi Sunak is now expected to come under pressure from MPs to solve the impasse amid mounting frustration that a potentially “world-changing” independent charity cannot start work.

One source, speaking to The Telegraph, described the current inertia as “politics standing in the way of urgent humanitarian need”.

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Sources said EU demands were just one of several factors holding up the signing-off of the funds.

But such a position, humanitarian experts say, will prevent assistance reaching some of the most affected people, including refugees, and those supporting them, irrespective of the delays.

The Government, when offering a response, declined to cite the EU as a reason for the delays, suggesting the withholding of the funds was necessary to “protect the integrity of our sanctions regime”.

A Whitehall source said: “We want Ukraine to feel the benefit of this money as quickly as possible, especially given the recent destruction of Kakhovka dam, but we must protect the integrity of our sanctions regime.”

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