Britain’s secret service is questioning how a controversial Russian oligarch with links to military hardware production was allowed to float his company on the London Stock Exchange, reportedly raising £1 billion.
Oleg Deripaska, one of Russia’s richest men and said to be a close ally of President Vladimir Putin, listed his energy company EN+ in London last November.
But MI6 have now raised concerns about why the flotation was permitted without a proper consultation with the intelligence services, at a time of heightened tensions between London and Moscow. One senior intelligence official told The Telegraph newspaper that the decision to let EN+ list was a “scandal”.
EN+ has strongly rebutted the claims, saying: "These allegations are highly damaging and we totally refute them in the strongest possible way."
In a statement on Wednesday, the company added: "The EN+ Group IPO was fully compliant with all relevant UKLA and FCA regulations and listing rules. The use of proceeds by EN+ did not breach any US and EU sanctions.
"Both EN+ Group and UC Rusal have necessary policies and procedures to ensure full compliance with US and EU sanctions applicable to their operations. EN+ Group has always been sanction-compliant."
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Mr Deripaska is president of Russian aluminium firm Rusal, which produces a metal powder used “in the production of military equipment”.
According to The Telegraph, the same powder was used in the production of a Russian-built Buk missile which investigators said took down Malaysia Airlines flight 17 over eastern Ukraine four years ago, killing all 283 passengers and 15 crew on board.
Former defence minister Sir Mike Penning has put forward a number of questions about the flotation of EN+ to MPs in the House of Commons.
The questions include whether Russian companies listed on the LSE, which supply aluminium to Russia, “represent a threat to the UK’s national interests and security”.
“Questions have to be raised about how a company led by a Russian oligarch with close ties to Putin has been allowed to register on the London Stock Exchange,” The Telegraph reported Sir Mike as saying.
“It is linked to military hardware and missiles that are being pointed at Nato and the West.”
The concerns come at a time when relations between the two countries are already at a very low ebb.
It followed disputes over alleged Russian meddling in European elections, and incidents of hacking with alleged links back to the Kremlin.
Adding to the controversy, EN+ is also part-owned by Russian state-owned bank VTB which faces sanctions from the EU and the US.
The sanctions mean VTB is prohibited from raising money in Europe. However, they do not apply to EN+. The Telegraph reports that the bank lent the company £697 million towards funding the flotation.
According to a source, cited by the newspaper, neither MI6 nor the National Security Council were consulted about the flotation.
“Serious concerns have been raised about the apparent failure to make proper checks about the likely implications for Britain’s security of allowing the EN+ sale to take place in the City,” the source said.
“There are concerns that the funds raised in the City could be used to circumvent sanctions, as well as providing a boost to Russia’s military industrial base at a time when the Russian military is posing an increasing threat to Britain’s security interests.”
Sir Mike added: “Russia is an enemy. As a former defence minister it was me that got called early in the morning because there were Russian Bears [planes] flying over. The sanctions were put in place for a reason.”
A spokesman for the Financial Conduct Authority told The Telegraph that the Treasury had been consulted on whether the deal breached sanctions. “We are not aware of any concern that the deal breached sanctions legislation as EN+ and other principal entities involved in the deal are not sanctioned entities,” he said.
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
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The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
List of alleged parties
May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff
May 20, 2020: They attend 'bring your own booze party'
Nov 27, 2020: PM gives speech at leaving party for his staff
Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson
Dec 13, 2020: PM and his wife throw a party
Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters
Dec 15, 2020: PM takes part in a staff quiz
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Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Sri Lanka squad for tri-nation series
Angelo Mathews (c), Upul Tharanga, Danushka Gunathilaka, Kusal Mendis, Dinesh Chandimal, Kusal Janith Perera, Thisara Perera, Asela Gunaratne, Niroshan Dickwella, Suranga Lakmal, Nuwan Pradeep, Dushmantha Chameera, Shehan Madushanka, Akila Dananjaya, Lakshan Sandakan and Wanidu Hasaranga
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
