Everton have turned down a £30m loan for their Bramley-Moore Dock stadium after the Premier League club found alternative sources of funding.
The loan had been promised by The Liverpool City Region Combined Authority which had pledged a package of financial support to assist the Blues and included a £15m grant to help pay for infrastructure and heritage work at the site.
The £30m loan had been expected to help with overall costs.
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Metro Mayor Steve Rotheram told the Liverpool Echo that the news was set to be announced in April, but he has responded now in light of questions arising from the Russian invasion of Ukraine.
Everton suspended their commercial ties with billionaire Alisher Usmanov last week and his assets have been frozen by the EU, UK and US.
Mr Usmanov has been a close associate and friend of Everton owner Farhad Moshiri.
A statement from his office said: "In September 2021, the Liverpool City Region Combined Authority approved funding for a £15m grant and £30m loan to support work connected to the new Everton stadium project at Bramley Moore Dock.
"As with all investments supported by the LCRCA, assurances were sought that the project aliened with our investment strategy and significant due diligence was undertaken to ensure that the project would provide value for money.
"As one of the largest construction projects in the North of England, coupled with long-term commitments to regenerate the local community, the LCRCA supported the scheme on the basis that it could be the catalyst for the transformational regeneration of communities across North Liverpool and South Sefton.
"Earlier this year, Everton Football Club notified with LCRCA that it had found alternative sources of funding from the private sector and would therefore no longer require the £30m loan.
"We are in contact with Everton about the next steps on the £15m grant that is intended to preserve the historical assets of Bramley Moore Dock; support the wider development of the site; create jobs for local people and attract visitors to the region."
On Thursday, it was announced that Mr Moshiri had severed all business links with Mr Usmanov.
The club started removing branding associated with the companies from their ground earlier in the week.
USM Holdings, the company that sponsored Everton's Finch Farm training ground, had paid £30m for the option on the naming rights at Bramley Moore.
Mayor Rotheram and his team were questioned on the status of the funding package by Liverpool's Liberal Democrat leader, Cllr Richard Kemp.
In response, a statement from Mayor Rotheram, seen by the ECHO, said: "I was pleased to see Everton Football Club take decisive action to close sponsorship arrangements with Russian companies following Vladimir Putin's invasion of Ukraine.
"In September 2021, the Liverpool City Region Combined Authority (LCRCA) approved funding to Everton Football Club for a £15m grant and £30m loan to support work connected to the new stadium project at Bramley Moore Dock.
"As one of the largest construction projects in the North of England, coupled with long term commitments to regenerate the local area, the LCRCA supported the scheme on the basis that it could be the catalyst for much-needed regeneration of communities across North Liverpool and South Sefton.
"As with all applications for LCRCA funding, bids are independently assessed and must go through a full business case process. The conditions of the funding must be in line with our assurance framework, which has been agreed with central government, and our investment strategy.
"It is only once these strict criteria are met that any application comes before the political leadership of the LCRCA for consideration.
"In this case, more than two years' worth of planning and due diligence was carried out, with local leaders assured that the benefits of this project outweighed the risks and mitigation against risk was factored into the structure of the deal.
"However, in January 2022, Everton notified the LCRCA that it had found alternative sources of funding from the private sector and would therefore no longer require the £30m loan.
"I believe the fact that Everton had to go to the private sector to secure better terms is testament to the competitive nature of the deal struck by the LCRCA.
"Notification of this change was due to be brought to the April meeting of the LCRCA, however, due to public interest in the deal following sanctions on Russian business interests in the UK, we have sought to bring this announcement forward.
Mayor Rotheram added: "The Liverpool City Region Combined Authority remains in contact with Everton about the next steps on the £15m grant, which is intended to preserve the historical assets of the Bramley Dock area, support the wider development of the site, create jobs for local people, and attract visitors to the region.
"However, as with the loan the applicant for the funding is Everton Football Club (not any parties associated with it) and all funding will be ringfenced solely in support of the activities listed above."
