Russian oligarch Roman Abramovich must “immediately compensate” victims of the Ukraine war or face court action, the prime minister said.

Former Chelsea Football Club owner Roman Abramovich promised in 2022 that funds from the sale of the club would be used to help victims of Russia’s invasion of Ukraine.

The money has been frozen in British bank accounts since he was sanctioned following Russia’s invasion of Ukraine.

But the release of the funds was delayed due to disagreements between the British government and his lawyers.

Speaking in the House of Commons, Sir Keir Starmer said the UK had issued licenses “to transfer £2.5 billion from the sale of Chelsea Football Club frozen from 2022”.

Sir Keir said: “My message to Abramovich is clear: time is ticking.

“Follow the promises you made and pay immediately, and if you don’t, we’re prepared to go to court and make sure every penny reaches those whose lives have been torn apart by Putin’s illegal war.”

government Abramovich first threatened to prosecute in June.

The Treasury Department said that under the terms of the license, the funds must be used for “humanitarian causes” in Ukraine and cannot benefit Abramovich or any other sanctioned individuals.

The British government wants the money to be used for humanitarian aid in Ukraine, but Abramovich said he wanted the money to go to “all the victims of the war in Ukraine.”

Abramovich, a Russian billionaire who made his fortune in oil and gas, was given special permission to sell Chelsea after Russia invaded Ukraine if he could prove he would not benefit from the sale.

He is said to be close to Russian President Vladimir Putin, which he denies.

He was barred from receiving the £2.5bn sale proceeds under UK sanctions, but the money was still legally his.