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The chancellor and foreign secretary are threatening to take Roman Abramovich to court to seize the proceeds of his Chelsea FC sale.

The Russian oligarch, who is sanctioned by the UK government over his alleged links to Vladimir Putin, sold Chelsea for £2.5bn to an American consortium in 2022, after Russia’s invasion of Ukraine.

Those funds remain in a frozen UK bank account but are meant to be used for humanitarian causes linked to the Ukraine war.

Roman Abramovich was seen by Ukraine as a potential go-between with Vladimir Putin
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Abramovich has denied close ties to Vladimir Putin. File pic: Reuters

Chancellor Rachel Reeves and Foreign Secretary David Lammy have now said they are “deeply frustrated” an agreement cannot be reached with the oligarch and will take him to court if it cannot be dealt with soon.

In a joint statement, they said: “The government is determined to see the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine, following Russia’s illegal full-scale invasion.

“We are deeply frustrated that it has not been possible to reach agreement on this with Mr Abramovich so far.

“While the door for negotiations will remain open, we are fully prepared to pursue this through the courts if required, to ensure people suffering in Ukraine can benefit from these proceeds as soon as possible.”

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"We can all see over the last months how much the world is changing, but the British government isn't just going to stand by and watch that change.
"We ought to shape it in our national interest.
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Rachel Reeves said she was ‘deeply frustrated’ an agreement had not been reached by Roman Abramovich

Abramovich was forced to sell Chelsea – which he bought for a reported £140m – after 19 years of ownership, after being sanctioned by the government over his alleged close ties to the Russian president – something he denies.

The sale was made under the supervision of the Office of Financial Sanctions Implementation, under the proviso the proceeds go to humanitarian aid in Ukraine.

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Ukraine targets Russian military aircraft

In March, the Foreign Office said officials were in talks with Abramovich’s representatives, but multiple sources told the BBC there had been no meetings between any Labour ministers and members of the foundation set up to oversee the funds since last July’s general election.

They said there was a deadlock and a political decision by a minister is needed to negotiate and sign off an agreement.

It is not known if there have been meetings in the three months since then.

The £2.5bn – and interest accrued – would make up for some of the reduction in the aid budget, announced in February.

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Good economic news as sunny weather boosted retail sales

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Good economic news as sunny weather boosted retail sales

Retail sales grew in June as warm weather boosted spending and day trips, official figures show.

Spending on goods such as food, clothes and household items rose 0.9%, the Office for National Statistics (ONS) said.

It’s a bounce back from the 2.8% dip in May, but last month’s figure was below economists’ forecast 1.2% uplift as consumers dealt with higher prices from increased inflation.

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Also weighing on spending was reduced consumer confidence amid talk of higher taxes, according to a closely watched indicator from market research firm GfK.

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

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June’s retail sales rise came as people bought more in supermarkets, and retailers said drinks sales were up.

While hot and sunny weather boosted some brick-and-mortar shops, the heat led some to head online.

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Non-store retailers, which include mainly online shops, but also market stalls, had sold the most in more than three years.

Not since February 2022 had sales been so high as the Met Office said England had its warmest ever June, and the second warmest for the UK as a whole.

The June increases suggest that the May drop was a bump in the road. When looked at as a whole, the first six months of the year saw retail sales up 1.7%.

Filling up the car for day trips to take advantage of the sun played an important role in the retail sales growth.

When fuel is excluded, the rise was smaller, just 0.6%.

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Despite lower consumer sentiment and more expensive goods, consumers are benefitting from rising wages and are cutting back on savings.

The ONS lifestyle survey – backed up by hard data like the Bank of England’s money and credit figures – shows that households have rebuilt their rainy day savings and are cutting back on the amount of money they squirrel away each month.

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Former Poundland owner lines up advisers as restructuring looms

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Former Poundland owner lines up advisers as restructuring looms

The former owner of Poundland is lining up advisers to supervise its transition to new shareholders through a court-sanctioned process that will involve store closures and job cuts at the discount retailer.

Sky News has learnt that Pepco Group, which is listed on the Warsaw Stock Exchange, is drafting in FRP Advisory weeks after it struck a deal to sell Poundland to Gordon Brothers.

Industry sources said FRP had been asked by Pepco to act as an observer, with the High Court scheduled to sanction a restructuring plan in the last week of August.

Under the proposed deal, 68 Poundland shops would close in the short term, along with two distribution centres.

More shops are expected to be shut under Gordon Brothers over time, resulting in hundreds of job losses.

Pepco is said to be particularly focused on IT systems which Poundland uses in common with Pepco’s operations in Poland.

Barry Williams, managing director of Poundland, said at the time of the deal’s announcement: “It’s no secret that we have much work to do to get Poundland back on track.

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“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.

Prior to the deal’s announcement, Poundland employed roughly 16,000 people across an estate of over 800 shops in the UK and Ireland.

Tax hikes announced by Rachel Reeves, the chancellor, in last autumn’s Budget have increased the financial pressure on high street retailers.

In recent months, chains including WH Smith, Lakeland and The Original Factory Shop have changed hands amid challenging circumstances.

In June, Sky News revealed that River Island, the family-owned clothing retailer, was also working with advisers on a rescue plan aimed at averting its collapse.

Pepco and Poundland declined to comment.

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TalkTalk dials up £100m investment from Ares Management

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TalkTalk dials up £100m investment from Ares Management

TalkTalk, the telecoms and broadband group, has secured a £100m capital injection from one of its existing backers in a deal that will relieve the growing financial pressure on the company.

Sky News has learnt that Ares Management has agreed to provide the new funding in two tranches, with the first £60m said to be imminent.

A deal could be announced as soon as Friday afternoon, according to banking sources.

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The funding agreement comes amid discussions between TalkTalk and its bondholders about a potential break-up of the company, which would involve the sale of its consumer arm and PXC, its wholesale and network division.

Those disposals are now not expected to be launched in the short term.

One person close to the situation said that in addition to Ares’s £100m commitment, TalkTalk had raised £50m from two disposals in March and June, comprising the sale of non-core customers to Utility Warehouse.

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There was also an in-principle agreement to defer cash interest payments and to capitalise those, which would be worth approximately £60m.

TalkTalk has been grappling with a strained balance sheet for some time, and recently drafted in advisers from Alvarez & Marsal, the professional services firm, to assist its finance function.

The group has more than 3m broadband customers, making it one of the largest players in the UK market.

It completed a £1.2bn refinancing late last year, but has been under pressure from bondholders to raise additional capital.

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Last month, the Financial Times reported that BT’s broadband infrastructure arm, Openreach, could block TalkTalk from adding new customers to its network in an escalating dispute over payments owed to BT Group.

TalkTalk, which was taken private in 2021, and Ares both declined to comment.

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