Appointment of Lord Lebedev

Debate between Clive Efford and Alex Cunningham

Tuesday 29th March 2022 Commons Chamber

[Clive Efford (Eltham) (Lab)]

The suggestion that Labour Members are somehow anti-Russian is not borne out by the facts and is just an attempt by Government Members to avoid the criticism that the motion makes of the way they handled the appointment of Lord Lebedev. In order to understand why his appointment to the House of Lords is concerning, we have to look at the history of where the family money came from.

Evgeny Lebedev’s father is a former KGB operative. He joined the KGB in the early 1980s, he was active in the KGB through perestroika and he was active in London. Although as a diplomat he had diplomatic cover, he operated as a spy out of Kensington Palace Gardens from 1988 to 1992. During perestroika, the KGB reformed itself. Rather than being an anti-capitalist organisation, it used the knowledge it had gained of capitalism, and members of the KGB became capitalists themselves. In an extraordinary way, many became extraordinarily rich in a very short space of time.

In the early ’90s, Alexander Lebedev set up his first business. By 1995, he was able to buy a bank, the National Reserve Bank. It was a bank in financial difficulties; none the less, he had enough money to buy it. Its assets grew incredibly fast, and by 2006 his fortune was estimated to be $3.5 billion. Not bad work for a member of the KGB. He was listed by “Forbes” as Russia’s 39th richest man. He also purchased newspapers along the way—something that would be repeated by the family in later years.

In 1997, the Russian prosecutor general, Yury Skuratov, opened multiple investigations into Lebedev and the NRB, accusing the bank of tax avoidance and fraud. Skuratov also investigated Yeltsin’s Government in the late 1990s, and he believed that Lebedev was spying on him to counteract the investigations into the NRB and the Kremlin. Leaks about Skuratov’s personal life went on the internet and were traced back to an organisation called Konus, a security company linked to Lebedev’s bank, the NRB. In 1999, a sex kompromat tape appeared showing a man who looked like Skuratov with two young sex workers. Kompromat is a set-up—basically, a honey trap—where people are filmed in compromising situations. Skuratov denied that it was him.

At the time that the tape was leaked, Putin was head of the FSB, the Russian spy organisation that replaced the KGB. Putin declared on national television that the man on the tape was Skuratov. Skuratov was sacked and the corruption investigations into Alexander Lebedev’s bank and the Government collapsed. Putin then entered the Kremlin, and Lebedev’s wealth increased exponentially.

Kompromats are used by secret services, especially the KGB. Our secret services have said that if someone put themselves in a compromising position, as the Prime Minister did when he went to the Palazzo Terranova, they too would have been on it, and would have tried to find evidence that the subject they were investigating had compromised themselves. That is why the security services are so alarmed by the behaviour of the Prime Minister—by the fact that he would leave behind his security detail and go to bunga bunga parties at Palazzo Terranova.

We have to understand that we are talking about a pattern of behaviour by Russian oligarchs. They have used London to launder their money—to turn dirty money into clean money—and then meticulously set about buying influence in various parts of British society. They are starting to buy political influence, social influence, football clubs, and newspapers—you name it, they are seeking to influence it. They are using strategic lawsuits against public participation against any journalist, newspaper or book writer who investigates what they are up to. Political donations are part of this; £2.2 million has been donated since the Prime Minister became leader of the Conservative party.

Then there is VTB Bank, the second largest bank in Russia, which has been sanctioned by the Government. An individual who works for it, in global fixed income trading, has given £44,000 to the Tory party in the last two years, including £3,000 to the Conservative party in Greenwich, my borough. We are fighting local elections; why should they be paid for by Russian money that comes from a bank that is associated with the Kremlin? Why should somebody who is paid by a Russian bank finance local government elections in this country? How is that justifiable?

[Alex Cunningham (Stockton North) (Lab)]

Given what my hon. Friend says, he will be interested to hear that Lord Wharton, who was appointed to the Lords on the same day as Mr Lebedev, is a former adviser to Alexander Temerko, who has distributed money to Tory MPs and the Tees Valley Mayor. Yesterday, it was revealed that the Mayor’s close relative has been appointed to Lord Wharton’s Office for Students. Does my hon. Friend agree that the Prime Minister’s dodgy actions are perpetuated throughout the Tory party?

[Clive Efford]

I absolutely do. We need to shine the light of accountability on what has been going on. That is what the motion calls for. It calls for the evidence to be published—