Lord Barker under pressure to cut ties with EN+ Group despite restructuring plans
Tory peer Lord Greg Barker is facing increasing criticism from politicians in the House of Commons – including from his own party – following his refusal to sever his ties with En+ Group (EN+).
Lord Barker is stepping back as executive chairman of EN+ but City PM understands he plans to take over large parts of the business in a restructuring aimed at distancing the company from Russia.
The aluminium giant was founded by oligarch Oleg Deripaska, who has previously been sanctioned by the US over alleged ties to Russian President Vladimr Putin.
Deripaska is the largest shareholder in EN+, with a 45 per cent holding in the company, but his role has been limited in recent years, following an agreement with US authorities after EN+ was sanctioned in 2018.
However, EN+ still owns a controlling stake in Rusal – Russia’s main exporter of aluminium.
Under the restructuring plan, the newspaper reports EN+ is looking to shift Rusal’s operations in Europe, Australia and Africa into a separate company, which would have no Russian owners, control or management.
Lord Barker earned $4m (£3m) in 2020 as executive chairman of the company, and pocketed $7.8m in 2019 through salary and bonuses.
However, several senior politicians have said that rather than to continue helping Deripaska, Lord Barker should sever his links with the billionaire.
Former Tory minister David Davis argued: “As a matter of law, people like him should be disqualified from holding office in those companies.”
Tory MP Sir Iain Duncan Smith said: “If he’s been aiding and abetting” Deripaska, Barker should be removed from the Lords and made to pay back fees earned at EN+. I would recommend the Lords take a very close look at their ability to get rid of people.”
Liberal Democrat leader Sir Ed Davey added: “Any peer with Russian business interests must end them immediately or they face inadvertently helping the Putin regime. If they fail to, they must face serious consequences.”
This follows calls last week from Defence Secretary Ben Wallace for Lord Barker to remove himself from EN+ and quit the House of Lords .
On Wednesday, Joan MacNaughton quit as an EN+ director.
She said Russia’s invasion of Ukrane had “changed irrevocably” the basis on which she joined the company.
A source close to the company told The Sunday Times: “Lord Barker has already decided to resign from EN+. But he wants to take as many of the international businesses with him as he can, saving hundreds of jobs.”
However, the Henry Jackson Society has criticised Lord Barker’s manoeuvring.
Speaking to City A.M., the think tank said: “This restructuring looks and smells like a desperate attempt to shield assets for the inevitable coming sanctions. In the minds of many, Lord Barker has long since lost the good name he once had, if he a shred of decency he would resign his post forthwith and abandon his seeming ploys to continue profiting from EN+.”