Tory peer paid £6m by Russian energy company linked to billionaire friend of Vladimir Putin

Lord Barker of Battle was paid £6 million last year by EN+, an energy company in which Oleg Deripaska, a billionaire oligarch and friend of the Russian president, has a 35 per cent stake

Credit: Ben Birchall/PA Archive

A former Tory minister was paid £6 million last year by a company linked to an ally of Vladimir Putin.

Lord Barker of Battle received the sum in 2019 from EN+, an energy company in which Oleg Deripaska, a billionaire oligarch and friend of the Russian president, has a 35 per cent stake.

However the payment – some of which Lord Barker received when he was a full member of the House of Lords –  has never been disclosed to Parliament because House of Lords rules presently do not require it.

The sum – disclosed in EN+’s annual report – comprised a salary of $1.9 million and a “discretionary bonus” of $5.9 million, making him one of the UK’s highest earning peers.

Lord Barker – who as Conservative MP Greg Barker was Climate Change minister from 2010 to 2014 – joined the board of EN+ in October 2017 as independent chairman, before becoming executive chairman in February 2019.

That same month — on February 27, 2019 – he was granted a leave of absence from the House of Lords which meant that he stood back from voting on legislation or speaking in debates.

However, under House of Lords rules, he is still allowed to use his title, and have access to the Lords’ dining rooms where he can bring up to six guests.

While Lord Barker declared his position as "independent non-executive director of EN+ Group" in his entry in the House of Lords register of members’ interests until February 2019, his entry for the following month simply said: "On leave of absence; exempt from registration."

Lord Barker told The Telegraph that "only a very small proportion of the sum in question relates to the first two months of 2019" when he was an active peer.

He said he had not returned to the Lords since taking his leave of absence and said he backed peers being required to disclose their earnings from third parties.

Asked if it was right a peer should receive so much from a Russian company, he said: "En+ Has no operations in the UK. It has no ask of the UK government.

"None of my remuneration relates in any way to membership of the House of Lords. The total package is significantly less than the earnings of the chairman of Alcoa, a smaller company in the same sector."

In its recent report on Russia, Parliament’s Intelligence and Security committee said: "It is notable that a number of members of the House of Lords have business interests linked to Russia, or work directly for major Russian companies linked to the Russian state.

"These relationships should be carefully scrutinised, given the potential for the Russian state to exploit them."

Tom Tugendhat MP, the Tory chairman of the Foreign Affairs committee, said: “Over the last three years the Foreign Affairs Committee has focused on how foreign influence undermines our democracy and our security.

“There is a clear case for a Foreign Agents Regulation Act because beneficial ownership is as true of individuals as it is of secretive companies.”

Bob Seely, a Conservative MP, added: "If this does not make the case for a foreign lobbying act, I don’t know what does.

"A former Minister earns millions by working for a Russian oligarch alleged to be close to President Putin, a man hostile to both democracy and Britain.

"You would perhaps have thought this would warrant a mention on a declaration of interests? Or at least some kind of explanation or offer of transparency?

“The House of Lords urgently needs to clean up its act otherwise incidents like this will damage its reputation, regardless of whether Lord Barker has taken leave of absence or not."

Currently peers must register all paid and unpaid employment but they do not have to declare how much they receive from outside parties.

MPs must declare all sums over £100.

A spokesman for the Lords Conduct committee told The Telegraph: “The Committee takes very seriously the questions which have been raised around members of the House working with foreign governments and associated companies.

"It has already considered initial options and intends to make recommendations to the House later in the year.”