Elections Bill — House of Lords, 2022-03-15
Topic: International Affairs
Raymond Collins (Labour, Centre-left): My Lords, this is a probing amendment, but it is highly topical. I am trying to see the relationship between the registration of parties and the sanctions legislation that we recently adopted. Following yesterday’s consideration of the fast-tracked Bill, Liz Truss plans to name even more people. It would certainly make it easier for Ministers to impose sanctions on those with Kremlin links. One of the things we addressed last night was the loopholes that have allowed oligarchs and kleptocrats to evade scrutiny. They have been quite successful in hiding their assets, certainly property—an issue we have discussed for quite a long time One of the things that I have been banging on about quite a bit is the Russia report and its recommendations on security risks to our democracy from interference from foreign powers and how we address that issue. We addressed this at Second Reading. It is not just some of the messaging and social network-type interference which we have seen, particularly in the US but also here, but about how our political parties are funded Boris Johnson told the House of Commons that "it is very important for the House to understand that we do not raise money from Russian oligarchs."—[Official Report, Commons, 23/2/22; col. 313.] For many of us, it was very difficult to take that remark seriously when we look at some of the records that have been exposed. It is obviously impossible for someone with only Russian nationality, however rich, to donate legally to a United Kingdom political party, but what has undoubtedly happened is that a series of people with dual UK/Russian nationality, or with significant business links with Russia, have donated heavily to the Conservatives in recent years. Based on electoral information, Labour has estimated that donors who have made money from Russia or Russians have given £1.93 million to the Tory party or to constituency associations since Johnson became Prime Minister. In the other place, Ian Blackford of the SNP referred to the Conservatives having raised £2.3 million from Russian oligarchs I recognise that "oligarch" is a loose term associated with people who generally made their money from the financial free-for-all of the post-Soviet, Putin era, but those people often keep a very close link with the Russian President. One reason the legislation is so important is the connections. You can have a permissible donor who is linked very closely to someone who is not a permissible donor, and if the links to the assets and the finances are obscure it is difficult to follow the money, as Liz Truss said One of the biggest single donors to the Conservative Party is Lubov Chernukhin, who has donated £700,000. She has been a British national since 2011 and is married to Vladimir Chernukhin, a former deputy finance Minister under Putin. Documents published in the Pandora papers in October suggest that he was allowed to leave Russia in 2004 with assets worth about $500 million and to retain Russian business connections. Lawyers representing the couple say that none of the wealth was acquired in a corrupt manner and none of Vladimir Chernukhin’s wife’s donations was funded by improper means or affected by the influence of anyone else. That is extremely difficult to understand when you look at some of the documents in the Pandora papers published by the Guardian. Lubov Chernukhin is also notable for winning the prize of a game of tennis with Boris Johnson at the party’s 2020 fundraising ball. It is not clear whether she has managed to get that prize yet That shows us the extent of foreign money coming into our political process and our political parties. The reason I am raising that on this clause is that we have yet to see political parties being established for the purpose of undermining the political system we have. I anticipate all kinds of reactions from friends of Putin—to put it that way—that we have not seen before. If our sanctions legislation gets stronger and we have the economic crime Bill that we anticipate seeing in the next Session, we may see this hidden money going in different ways that will perhaps have less scrutiny but very strong connections. I am probing this to see what the Government have thought of in terms of transparency in the establishment of political parties and what they are going to do about the broad recommendations of the Russia report, which they have not really taken into account. We will certainly be returning to the question of donations to political parties later in consideration of the Bill, but I thought that this was an opportunity to look at whether there has been any risk assessment by the Government of how political parties that could fundamentally undermine our system may be established and funded. I beg to move.