Should the Russian businessman fail to free the funds quickly, the British government said it was "fully prepared to take him to court."

Chelsea logo on a corner flag in London in 2022.Chris Lee / Chelsea FC via Getty Images file

Britain on Wednesday said it was giving Russian oligarch Roman Abramovich a final chance to give Ukraine 2.5 billion pounds ($3.33 billion) from the sale of top English soccer team Chelsea or face potential legal action.

Britain sanctioned Abramovich in a crackdown on Russian oligarchs after Moscow`s invasion of Ukraine in 2022, triggering a rushed sale of the Premier League soccer club and freezing of the proceeds.

Britain wants the funds spent only on humanitarian causes in Ukraine, in line with a wider European push for Moscow to foot the bill for deaths and destruction triggered by its invasion.

Abramovich has previously sought more flexibility and said he wants the money to go to all victims. Abramovich has 90 days to act under the terms of the government`s new licence.

Should the Russian businessman fail to free the funds quickly, the government said in a statement that it was fully prepared to take him to court if necessary to enforce a 2022 agreement with him.

"It`s unacceptable that more than 2.5 billion pounds of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account," finance minister Rachel Reeves said in the statement.

License needed

Prime Minister Keir Starmer said Britain would issue a licence to release the funds. This would allow the transfer of the money to a new charitable foundation.

"We will consider any proposal from Mr Abramovich to make use of this clear legal route to establish the foundation and transfer the funds under the terms of the licence," Reeves said in a separate statement issued to parliament.

European Union leaders are set to review on Thursday proposals aimed at using proceeds from immobilised Russian sovereign assets to support Ukraine`s huge budget and defence needs - something Moscow fiercely opposes.

Under Abramovich, Chelsea enjoyed the most successful run in their history before the club were sold to a consortium led by U.S. investor Todd Boehly and private equity firm Clearlake Capital in May 2022.

Proceeds from the sale are frozen in a British bank account. They cannot be moved or used without a licence from the Office of Financial Sanctions Implementation, the agency in the finance ministry that enforces sanctions.