Boris Johnson was reported to have consulted a think-tank with links to Russia before writing an ultimatum on Brexit to Theresa May. Jack Taylor/ Getty Images
Boris Johnson was reported to have consulted a think-tank with links to Russia before writing an ultimatum on Brexit to Theresa May. Jack Taylor/ Getty Images

Think tank advising Brexit-backing cabinet ministers has Russian links



The Brexit ultimatum issued to prime minister Theresa May by her Leave-supporting cabinet ministers Michael Gove and Boris Johnson was overseen by figures at a think tank founded by a multimillionaire who made his money in Russia during the wild years of free-market capitalism after the Soviet Union collapsed.

A senior member of the Legatum Institute, which was set up by the New Zealand-born Christopher Chandler and his brother Richard, helped to draft the letter which put pressure on Mrs May to harden her stance on Brexit.  The Mail on Sunday newspaper reports that Shanker Singham, Legatum’s economics director, was the "third man" alongside Mr Gove and Mr Johnson who formulated the ideas sent to the prime minister.

The letter contained three red lines for the Brexiteers in the cabinet: that chancellor Philip Hammond plan for a "hard Brexit", which he had been resisting; to use Brexit to cut red tape across Whitehall and beyond; and for there to a "Brexit Tsar" appointed who would work across the civil service ensuring that preparations for exit from the EU were being co-ordinated.

It now looks as though the letter was an unmitigated success. Mr Hammond’s budget this week set aside £3 billion for preparations for a "no deal" situation. It’s also been widely reported, according to the newspaper, that the environment secretary Mr Gove has been crowing that the PM will use Brexit to help slash rules and regulations enforced by Brussels.

And it appears that Mr Singham himself is positioning to take on the Whitehall role. The Mail on Sunday claims that over the past year he has held at least seven secret meetings with key figures at DexEU – the Department for Exiting the EU headed by David Davies. A dual US-UK citizen, Mr Singham previously worked for 18 years at the American law firm Squire Sanders, which has been part of the investigation into Donald Trump’s links to Russia.

The Chandlers also have strong links to Russia. In 2000 they helped to engineer a boardroom coup at the energy giant Gazprom that brought in Alexey Miller as its boss. Mr Miller had links to Vladimir Putin, who had just won his first term as president at the turn of the century.

In 2006 Christopher set up the Legatum Group, which is a parent organisation of the institute. It has been forceful in demanding that Britain make a "hard Brexit" from the European Union. It received more than £4.4 million in funding last year – £3.9 million of which came from the Legatum Group.

Mr Gove told the UK newspaper that he had met one of the Chandler brothers on one occasion. But when asked about a meeting on Friday with Mr Singham that the newspaper had uncovered, he said that the “blessed sponge of amnesia wipes the memory slate clean”.

A former Labour cabinet minister, Liam Byrne, told the newspaper: “In the light of the Mail on Sunday’s revelations of the close links between the Legatum Institute and the Johnson-Gove hard Brexit putsch, it is now critical that this think tank’s relationship with the government is thoroughly investigated. I urge parliament’s intelligence and security committee to launch a wide inquiry into Russian interference and settle the serious and lingering questions.”

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

England squads for Test and T20 series against New Zealand

Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes

T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince

While you're here
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. 

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The squad traveling to Brazil:

Faisal Al Ketbi, Ibrahim Al Hosani, Khalfan Humaid Balhol, Khalifa Saeed Al Suwaidi, Mubarak Basharhil, Obaid Salem Al Nuaimi, Saeed Juma Al Mazrouei, Saoud Abdulla Al Hammadi, Taleb Al Kirbi, Yahia Mansour Al Hammadi, Zayed Al Kaabi, Zayed Saif Al Mansoori, Saaid Haj Hamdou, Hamad Saeed Al Nuaimi. Coaches Roberto Lima and Alex Paz.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

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The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

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MATCH INFO

Manchester United 2 (Heaton (og) 42', Lindelof 64')

Aston Villa 2 (Grealish 11', Mings 66')

Full Party in the Park line-up

2pm – Andreah

3pm – Supernovas

4.30pm – The Boxtones

5.30pm – Lighthouse Family

7pm – Step On DJs

8pm – Richard Ashcroft

9.30pm – Chris Wright

10pm – Fatboy Slim

11pm – Hollaphonic