Russophile former Tory minister Greg Barker’s firm EN+ has been implicated in the Foreign Affairs select committee report into dirty Russian money in London. Lord Barker’s primary role as chairman of EN+ was to give the group a veneer of respectability and to reassure the City as the Russian energy and aluminium producer listed on the London Stock Exchange last year. Then last month, Barker’s boss Oleg Deripaska was whacked with sanctions by the US government and accused of “benefiting from the Putin regime and playing a key role in advancing Russia’s malign activities”. While the FASC report says “there is no evidence of impropriety in the legal sense”, it is damning of the EN+ flotation on the LSE:

The flotation of En+ Group on the London Stock Exchange in November 2017, which raised around £1bn in share sales, provides an example of the contradictions inherent in UK Government policy towards Russia…

In February 2018, press reports emerged suggesting that both MI6 and US security officials had expressed serious concern about the IPO. One unnamed US official reportedly told the Telegraph: “What is the point of the U.S. imposing sanctions on Russia if the Russians can then get round them in Britain?”…

the ease with which such large-scale transactions occur also sends political messages that undermine the Government’s condemnation of what the Prime Minister has called the “well-established pattern of Russian state aggression”, encouraging President Putin and his associates to conclude that the money supporting that aggression is safe and welcome in London…

The use of London as a base for the corrupt assets of Kremlin-connected individuals is now clearly linked to a wider Russian strategy and has implications for our national security. Combating it should be a major UK foreign policy priority. The assets stored and laundered in London both directly and indirectly support President Putin’s campaign to subvert the international rules-based system, undermine our allies, and erode the mutually-reinforcing international networks that support UK foreign policy. The size of London’s financial markets and their importance to Russian investors gives the UK considerable leverage over the Kremlin. But turning a blind eye to London’s role in hiding the proceeds of Kremlin-connected corruption risks signalling that the UK is not serious about confronting the full spectrum of President Putin’s offensive measures.

We call on the Government to investigate the gaps in the sanctions regime that allowed a company such as En+ to float on the London Stock Exchange, and to work with the G7, whose markets dominate the financial world, and other international partners, to close those gaps as soon as possible.

Barker should be under pressure to resign over this scandal but has been let off the hook as ministers and Tory MPs have failed to criticise him. How can the Tories be claiming to take dirty Russian money in London seriously when they stayed silent as one of their own helped float a Putin crony’s company in London?

Last month Guido reported on how Russophile former Tory minister Greg Barker was working for Oleg Deripaska as chairman of En+ Group. Well, since then Deripaska was whacked with sanctions by President Trump and accused by the US of “benefiting from the Putin regime and playing a key role in advancing Russia’s malign activities”. Bad news for Barker’s En+, whose shares plummeted 22% on Friday and fell another 17% today.

Barker is one Tory who knows sanctions against Russian wrong ‘uns work…

Former Tory MP and tree-hugging Energy & Climate Change minister Greg Barker has had a difficult start to 2018. As we previously reported in November, Russophile Lord Barker of Battle’s primary role as chairman of En+ Group was to add a veneer of respectability to reassure the City as the Russian energy and aluminium producer listed on the London Stock Exchange. Once the LSE accepted the listing, Barker must have thought his main struggles were over…

Slightly concerning then that Barker’s boss, Oleg Deripaska, is now under the cosh on several fronts. At the end of January Deripaska was named on the US Treasury list of oligarchs linked to the Russian government. Deripaska owns over 70% of En+ and is also the subject of a letter to the SFO from the Russian opposition leader Alexei Navalny, calling for an anti-corruption investigation into his affairs after he was filmed on a yacht with Sergei Prikhodko, Russia’s deputy PM. The yacht trip only added to the intrigue around Deripaska’s links to Manafort and the Trump campaign, especially with new allegations of more meetings on the US elections surfacing…

This is likely not M’lud Barker’s biggest headache. Both MI6 and officials in Washington are angry that the float went ahead, as most of the funds raised went straight to the state-owned Russian bank VTB, which is under both EU and US sanctions. Having secured a bridgehead on the LSE, En+ is rumoured to be gearing up to raise another $1 billion from investors. While happy for its oligarchs to raise money in London, Russia seems less pleased about the presence of ex-KGB officials in Salisbury. Barker, a close pal of ex-PM David Cameron, must be wondering how to salvage this one…