National Lottery Operator in The UK Borrowed Millions from Kremlin-Owned Banks
Loans from Russian Banks Raised Questions Over Transparency and Influence in Allwyn’s Bid Process
The company behind the UK’s national lottery, Allwyn, secured substantial loans from Kremlin-owned banks prior to being awarded the nation’s largest public-sector contract, The Guardian exclusively revealed.
In 2020, Allwyn entered into an agreement with a syndicate that included Russia’s largest lenders, VTB and Sberbank, to borrow up to €640 million (£545 million). This financial arrangement occurred two years before Allwyn was selected as the “preferred bidder” for the lucrative £6.5 billion lottery contract.
While Allwyn later repaid the portion of the loan associated with the Russian banks following the invasion of Ukraine, questions have been raised regarding the role these funds played in supporting Allwyn during the competitive bidding process for the lottery contract.
Despite the loans being repaid after the sanctions were imposed, they remained in place for nearly a month after both VTB and Sberbank were sanctioned by the UK government. Allwyn officially repaid the debts in late March 2022, shortly after being chosen by the Gambling Commission to run the lottery.
There is no direct evidence suggesting that the loans were utilized to finance the lottery bid or that there was any Russian influence over Allwyn’s bid. Allwyn, ultimately owned by Czech billionaire Karel Komárek, asserts that it adhered to Treasury sanctions guidance and promptly informed the Gambling Commission about the loans.
However, concerns have been raised about the transparency of Allwyn’s bid process. MPs, particularly those on the select committee for culture, media, and sport, have questioned why the Gambling Commission did not disclose information about the loans during previous evidence sessions.
Labour MP Clive Efford criticized the Gambling Commission, stating that it failed to provide “full and frank answers” regarding Allwyn’s links to Russia. Efford emphasized the importance of transparency in awarding public sector contracts of such significant value.
Conservative MP Iain Duncan Smith echoed these concerns, emphasizing the necessity for utmost transparency in awarding contracts of this magnitude.
Allwyn’s connections to Russian entities have been under scrutiny, particularly its joint ownership of a gas storage facility in the Czech Republic with Kremlin-owned Gazprom until February.
Despite public condemnation of Putin’s actions in Ukraine, questions persist about Komárek’s business links to Russia and whether they may have influenced Allwyn’s bid for the lottery contract.
The Gambling Commission defended its decision, stating that it required all applicants to declare their sources of funding and was satisfied that no sanctioned entities were involved in funding Allwyn.
The revelation of Allwyn’s loans from Kremlin-owned banks underscores the complexities and scrutiny surrounding the awarding of major public sector contracts and the need for transparency and accountability in such processes.
Author: DA
Source: The Guardian
