Labour ministers have yet to hold talks with key figures involved in unlocking the £2.5bn promised for Ukraine after Roman Abramovich’s sale of Chelsea football club.

Abramovich sold Chelsea in 2022, after he was sanctioned by the UK government over Russia’s full-scale invasion of Ukraine.

The £2.5bn raised was meant to be used for humanitarian causes linked to the Ukraine war but it remains frozen in a UK bank account.

Labour ministers are coming under increasing pressure to meet Abramovich’s representatives or the members of the foundation that was set up to manage the funds.

The Foreign, Commonwealth and Development Office (FCDO) told the BBC its officials are in talks with Abramovich’s representatives.

But multiple sources said there have been no meetings between any Labour ministers and members of the foundation set up to oversee the funds since the general election last year.

Sources close to the foundation said there was a deadlock and a political decision by a minister is needed to negotiate and sign off an agreement that can break the impasse.

One source said: “For three years, the government has been saying it’s been working very hard to release the money. But they are not having meetings with the foundation. There has been no meeting with a minister since Labour took over, for example.”

The BBC understands the FCDO has acknowledged a request for a meeting between the foundation’s board and Foreign Secretary David Lammy.

Abramovich’s representatives did not wish to comment, but those with knowledge of the situation acknowledged little contact or progress had been made on releasing the funds under the four prime ministers to have held power since the sale of the club.

The issue has taken on new urgency after Prime Minister Sir Keir Starmer announced that part of the UK’s overseas aid budget was being diverted to defence. In 2024/25, the UK is sending £282m in aid to Ukraine.

The £2.5bn – and the interest accrued on the funds – would make up for some of money taken from the aid budget, which was £15.3bn in 2023.

Alison Griffin, of charity Save the Children, said: “This money has been sitting gathering dust – and interest – when it could and should have been spent helping the children of Ukraine cope with the horrors of a full-scale war that has lasted over three years.”

The delay in releasing the funds centres on a disagreement between the UK government and Abramovich’s lawyers.

Abramovich was granted a special licence to sell Chelsea, providing he could prove he would not benefit from the sale.

At the time, Abramovich said proceeds from the sale would be donated via a foundation “for the benefit of all victims of the war in Ukraine”, and his position has not changed.

Abramovich – a Russian billionaire who made his fortune in oil and gas – cannot access the £2.5bn under UK sanctions but the money still legally belongs to him.

He is alleged to have strong ties to Russian President Vladimir Putin, something he has denied.

Sources said Abramovich’s lawyers have insisted on using the money for all victims of the war in Ukraine including those outside the country, but the UK government has pushed back and argued the funds should only be spent on humanitarian efforts inside the war-torn country.

Portugal has also had a say in the matter because Abramovich has Portuguese citizenship and has been sanctioned by the EU.

The Portuguese authorities issued an exemption to the EU sanctions to allow the Chelsea funds to be used for “exclusively for humanitarian purposes in Ukraine”.

“The EU and the UK have worked closely together to ensure that the proceeds of this sale be used for humanitarian purposes in Ukraine, via a charitable organisation, in line with the conditions laid out in the derogation,” said Olof Gill, a Commission spokesperson for financial services.

“The conditions under which the sale was authorised by the Portuguese authorities and which was accepted by the UK authorities must be respected and cannot be changed retroactively.

“The humanitarian needs in Ukraine remain extremely high.”

Members of the foundation, which is headed by Mike Penrose, the former boss of Unicef UK and Norwegian diplomat Jan Egeland, met former Foreign Secretary David Cameron and his deputy Andrew Mitchell in the spring last year.

Those with knowledge of the situation said the outcome of the meeting left a positive impression that the stalemate could be ended by allowing some of the funds to be used on humanitarian causes outside Ukraine.

The BBC understands the former foreign secretary believed a workable solution was in progress and a statement of intent about how the funds would be used was being drawn up by the foundation.

Lord Cameron had spoken to the European Commission about the proposal and had sought buy-in from Downing Street to sign off the agreement.

But there was no resolution to the dispute before last year’s general election and there have been no meetings with any ministers since Labour took office.

The foundation has a plan ready to roll out immediately once the funds have been unlocked.

There have been talks about programmes to help orphans of Ukrainian soldiers and cover health, housing and education needs for those fleeing the war.

A report by a House of Lords committee last year said the government’s failure to release the funds to support Ukraine was “incomprehensible”.

This week, The Guardian reported ministers were preparing to take Abramovich to court to free up the money.

Meanwhile, western countries are using the interest on frozen Russian assets to help Ukraine and there is talk of seizing them.

An FCDO spokesperson said: “This government is working hard to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as quickly as possible.

“The proceeds are currently frozen in a UK bank account while a new independent foundation is established to manage and distribute the money.

“UK officials continue to hold discussions with Mr Abramovich’s representatives, experts and international partners, and we will double down on our efforts to reach a resolution.”