An HS2 building contractor Strabag announced today it will suspend payments to Russian oligarch owner Oleg Deripaska after he was put on UK government sanctions list.
The fifty-four-year-old wealthy business magnate Mr Deripaska was targeted with a full asset freeze and travel ban by the UK government on March 10.
On the government sanctions document he is listed as “closely associated with the Government of Russia and Vladimir Putin”, who waged a deadly war in Ukraine.
Through his company, Rasperia Trading Ltd., Mr Deripaska owns a 27.8% stake in Strabag, which together with Skanska and Costain, forms SCS joint venture - one of HS2’s main contractors.
The Austrian- based construction group Strabag SE said decision to terminate the syndicate agreement with Rasperia Trading Ltd. was taken by its core shareholder the Haselsteiner Family Private Foundation after “all efforts to acquire the Russian shares have failed”.
Strabag Management Board announced they would stop dividends payments to Rasperia Trading Ltd in light of the UK sanctions.
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Chesham and Amersham politician Sarah Green MP said: “I welcome Strabag’s decision to cut ties with Oleg Deripaska and I am pleased that HS2 Ltd have confirmed that he will no longer be receiving taxpayer money through HS2.
“In my letters, I asked the Transport Secretary and CEO of HS2 to conduct a thorough audit of stakeholders in all companies contracted to work on publicly funded projects, including HS2.”
She urged them to reassure the public that in the future, no sanctioned individuals will get taxpayer money.
Strabag SE was asked to clarify when the decision to stop paying Mr Deripaska would take effect, and a spokesperson said: "According to the contract, the syndicate agreement will expire by the end of the year 2022.
"The decision of our core shareholder to terminate the syndicate agreement is independent from our management board’s decision to withhold the dividend payments for the shareholder Rasperia, which will affect already this year’s payment that is due on June 21."
HS2 welcomed the decision by Strabag’s board to stop paying Mr Deripaska.
A spokesperson for HS2 Ltd said: “As a result of this decision, Deripaska - who was sanctioned by the UK Government on 10 March - will not be receiving any taxpayers’ money from HS2.
“HS2 Ltd continues to operate a rigorous procurement process that ensures all procurements are conducted in line with Public Procurement Regulations, in accordance with Government policy.”
Forbes magazine estimated Mr Deripaska’s wealth at around £2.3 billion.
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