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Peter Mandelson
Furore: Business Secretary Peter Mandelson

Mandelson named in spy files on oligarch

Adrian Gatton and Robert Mendick
24 Oct 2008


BUSINESS secretary Lord Mandelson's relationship with the Russian oligarch at the centre of the "yachtgate" scandal is detailed in secret government intelligence files, the Evening Standard can reveal.

A source has told the Standard that Lord Mandelson's name features repeatedly in files held on Oleg Deripaska. The revelation will strengthen demands for Lord Mandelson to disclose all meetings and dealings with Mr Deripaska, Russia's richest man.

The references to Lord Mandelson appear in files contained on a massive, covert joint intelligence database called Scope. Scope allows Mi5, Mi6, GCHQ and the Joint Terrorism Analysis Centre to communicate with each other more quickly and securely than before. It enables the agencies to call up the latest intelligence within 15 minutes.

A source told the Standard: "Peter Mandelson appears in the Scope database. His name appears repeatedly in connection with the business dealings of Oleg Deripaska."

There is no suggestion that there is a file specifically devoted to Lord Mandelson nor that he has acted improperly in meeting Mr Deripaska. UK intelligence agencies opened a file on Mr Deripaska following a series of claims over his alleged links to organised crime in Russia. US authorities are also said to be concerned about Mr Deripaska's dealings.

The oligarch is banned from entering the US. At the request of the FBi in 2006, the US authorities revoked his visa and, despite lobbying, Mr Deripaska has failed to get it reinstated.

Mr Deripaska has never been convicted of any crime and denies all wrongdoing including any ties to organised crime. He insists his US ban is purely a bureaucratic error. Liberal Democrat MP Norman Baker, who has tabled questions in the Commons asking if the British authorities were aware of US concerns when issuing Mr Deripaska a visa, said today: "There are now a series of questions that need answering over Lord Mandelson's relationship with Mr Deripaska." it emerged today that Lord Mandelson and Mr Deripaska have known each other since at least 2004 - two years earlier than previously thought - when the two men were spotted dining in Moscow. Lord Mandelson had just been appointed a European Commissioner but had yet to take up the post. Lord Mandelson, appointed Business Secretary this month, has always insisted there was no conflict of interest in his friendship with Mr Deripaska. As European trade commissioner, he made decisions that may have had a direct impact on Mr Deripaska's business dealings, mainly in aluminium in which he made his fortune.

This week hedge fund manager Nat Rothschild, a friend of both Lord Mandelson and Mr Deripaska, wrote a letter to The Times suggesting Tory shadow chancellor George Osborne had attempted to "solicit a donation" from the oligarch during a meeting on the Russian's yacht, moored off Corfu.

The result was to turn attention to Mr Osborne's dealings with Mr Deripaska. Mr Rothschild, the millionaire financier and scion of the Rothschild banking dynasty, has been working strategically since 2005 to help Mr Deripaska's aluminium company Basic Element get a listing on a major stock exchange.

Mr Deripaska is convinced he is being smeared by Russian rivals. A source said: "There are a lot things flying around to blacken Mr Deripaska's name. Claims about security service files cannot be proved one way or the other."

No one at the business department was available for comment.

Reader views (14)

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# Val Daniels

"EEC Trade Commission". EEC? And you're telling someone else to do their homework? It hasn't been the EEC for a long time - haven't they now come clean and officially renamed it "The Fourth Reich plus Vichy"??

- Sam, Basingstoke, England, 24/10/2008 16:00
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Same old Mandelson. Funny how, despite the fact that he never does anything wrong, trouble seems to follow him everywhere he goes, isn’t it! Well, it would be funny but for the fact that he is now a Lord, ennobled by our beloved Prime Minister. I wonder if Brown will ever get anything right ever again. Does he fill his petrol car with diesel and then point out that the petrol station has run out of milk?

- St, London, 24/10/2008 15:45
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I reckon they've put this villain (and others!) in the House of Lords so that it will become so discredited no-one will resist when the Upper House - which reins in so much nefarious b*ll*cks from the Lower House - is finally abolished.

- Roz, Chamonix, France, 24/10/2008 15:02
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There is something of the snake in Mandelson.

Sly, creepy, poisonous and deadly.
Wherever he goes mystery and intrigue follow.
Nobody is safe from the knife in the back.

- Allan Orchard, Lincolnshire England, 24/10/2008 15:01
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Could this turn out to be Voldemorts shortest stint in Govt. In and out before the paint has dried on his office door.

- Adam, Harrow, UK, 24/10/2008 14:59
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#Gordon, Kirkaldy.

Calm down, dear boy, you'll do yourself a mischief. You need to gen up on the EEC Trade Commission. Each member country has its own Trade Commissioner. Peter Mandelson, powerful as he may be, does not pass regulations in isolation. Every Trade Commissioner has a vote. This is all getting out of hand. Have you noticed how every time the newspapers, or the BBC, say anything about Lord Mandelson, they always say, 'nobody is suggesting that he has done anything wrong', because he hasn't. It's not his fault that the opposition front bench have pea-sized brains. He is way out of their league and they don't like it. End of. Can we please talk about something else now.

- Val Daniels, Mijas Costa. Spain, 24/10/2008 14:49
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The slimy shirtlifter together with Cambell is up to his dirty tricks again, this guy needs topping

- Alfonso, London,UK, 24/10/2008 14:18
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This man is the greatest liar in British history, he simply can't help himself. He is the man that taught Billy Liar his craft.
Look on the bright side, though; his return to the heart of NuLiebour has reinforced the view that the entire cabinet, especially Gormless Gordon and his closest allies, are all morally corrupt. How else could one tolerate being so closely associated with Lord Mandelson of Mendacity.

- Keith Lonsdale, Doncaster, 24/10/2008 13:57
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Is it just me or is perhaps merely a coincidence but it seems that, since the Prince of Darkness has returned to the scene, the spin factory has opened for business again.

First we have allegations that Baron Hardup is on the make with another wealthy individual, and suddenly the sleaze gates open and allegations about Tory shadow cabinet members are being broadcast here and there.

Personally, I say "a plague on all your houses" but a double pox on his catacombe-0 regardless of who is lending him the money.

A stake through the heart is the only answer.

- Fiona, London, SW3, 24/10/2008 13:21
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Its just a bit of old fashioned international politicking old boy sponsored and facilitated by the charade of the European Union and the travesty of the current British government. If walls and the salons of cruise ship's and country mansions, including Chequers had ears you would find enough intrigue and skulduggery to outstrip the memoirs of Machiavelli.

- Robert El-Cid,, Hull, East Yorks.,, 24/10/2008 13:11
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Gordon-Kirkcaldy....
Great rant - I love the idea that Brown was responsible for people taking out huge loans,you obviolusly have a very low opinion of the average persons intelligence.....

if we are looking for culprits in the housing boom, I would suggest the Press and Media have to take some blame...particularly the get rick quick property shows. I remember 2000/01 very well, when there were shows on tv about how you could become an overnight millionaire by starting a website. When the media say its easy you know it just about to burst....

- Martin_Clerkenwell, london, 24/10/2008 13:00
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Oh dear. One had hoped our leaders were smarter than it now appears they are. MPs got away with their kitchen make-overs and free potted plants for years, but here are some of our brightest brains who didn't have the nous to keep their collars up, or stand behind the mizzen mast, when discussing the dosh with the wealthies. Where will we find some really savvy men to lead us into the dark future? British politics is doomed unless more devious minds come forward.

- John Problem, Hackney Wick, London, UK, 24/10/2008 12:00
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Keep digging MI ... there is alot more money hiding ... strip this man of his title ... or merely strip him of his life ...

- Mark, China, 24/10/2008 11:40
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Mandy of Sleazeandspin should be fired as unfit for public office. Public Enquiry and third time goodbye. He apparantly lied to the EU about his meetings with his Russian chum, and apparantly passed EU rules to give him millions. He is bent, like Brown he enjoys the deceptions.

Brown conned the UK with his boasts that he had ended boom and bust. Then there is a huge bust. No apology. He conned voters over inflation because he changed the measure which recorded it too low. That kept interest rates too low, so housing boomed. He conned millions into tghinking risk was low, so they took huge loans. They will suffer, and millions of lives will be ruined because Brown is a conman. revealed by his 10 pence tax fiasco, he taxed the poor to buy middle class votes. Brown has ruined UK finacially, morally and socially. Mandy and Brown are conman deserve each other. Now the bust is here Brown spins it as nothing to do with him. He is boasting again about himself.

Brown is using the bbc, such as Peston, to make out it is all the bankers and others. Brown set the whole framework. He manipulated the low interest rates, to follow inflation, he removed bank regulation, he borrowed and spent the maximum. Brown over Ecclestone said 'I lied, I lied, I lied, I will be destroyed'. Brown is more guilty than the bankers. Brown and Mandy are both unfit for office.

- Gordon, kirkaldy, 24/10/2008 10:13
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