UK Tory MP apologises for failing to declare loan from Russian-born businessman

David Warburton was found to have twice `breached the MPs' code of conduct over the loan

David Warburton, the independent MP for Somerton and Frome. PA

British MP David Warburton has apologised after he failed to declare a £150,000 ($177,175) loan from a Russian-born businessman.

The member for Somerton and Frome was found to have twice breached the MPs’ code of conduct by neglecting to register or later declare the payment he received from Roman Joukovski, through the overseas company Castlebrook Associates Ltd, in 2017.

Mr Warburton provided a favourable reference of Mr Joukovski to the Financial Conduct Authority in March 2021, before the full repayment of the loan, describing him as “extremely capable and an honest and straightforward person”, which put him under scrutiny.

It was claimed in a complaint to the Parliamentary Commissioner for Standards, Kathryn Stone, that the MP’s actions amounted to paid advocacy, as he was “effectively being paid by Mr Joukovski in the form of a loan”.

But Ms Stone found that, while the payment should have been lodged in the Register of Members’ Financial Interests and later declared in Mr Warburton’s reference to the FCA, the MP was not seeking to confer “a financial or material benefit” on the businessman.

It therefore did not constitute paid advocacy, she said, adding that she was also “mindful” the letter was submitted “substantially outside the six-month time limit set by the House’s paid advocacy rules”.

Oligarchs sanctioned by the UK - in pictures

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  The UK has sanctioned more than 1,400 individuals and businesses, including 100 oligarchs and their relatives, since Russia invaded Ukraine in February. The list of oligarchs includes: Roman Abramovich, 55. PA

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  Katerina Tikhonova, left, and Maria Vorontsova, unseen, also known as Maria Putina, daughters of Russia President Vladimir Putin. Reuters

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  Oleg Deripaska, 54. The industrialist is worth £2 billion and has had close links with the British political establishment. He has a multimillion pound property portfolio in the UK. Reuters

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  Igor Sechin, 61. Officials described Mr Sechin as Mr Putin's right-hand man and the second most important person in the country. Reuters

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  Andrey Kostin, 65. The chairman of VTB, a Russian state-owned bank. Mr Kostin is also a member of the supreme council of the United Russia political party and deemed a close associate of Mr Putin. AP Photo

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  Alexei Miller, 60. The chief executive of energy company Gazprom, Russia's largest company and the world's biggest public energy supplier. AFP

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  Nikolai Tokarev, 71, president of the Russia state-owned pipeline company Transneft. Mr Tokarev is a former KGB officer who served with Mr Putin in East Germany towards the end of the Cold War. AP Photo

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  Kirill Shamalov, 39. He is Russia's youngest billionaire and the ex-husband of Mr Putin's daughter Katerina Tikhonova. Reuters

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  Pyotr Fradkov, 43. He is head of the sanctioned Promsvyazbank, which finances Russian defence industries, and the son of Mikhail Fradkov, a former prime minister of Russia and chief of its foreign intelligence service. Reuters

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  Denis Bortnikov, 47. The deputy president of government-affiliated VTB bank. His father, Alexander Bortnikov, is head of the Federal Security Service. Getty Images

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  Yury Slyusar, 47. The director of United Aircraft Corporation, one of the major defence organisations that has also been sanctioned. Getty Images

Mr Warburton told Ms Stone that he did not register the loan at the time because it was “entirely unconnected” with his role as an MP or “any parliamentary activities”.

He also stressed it was “neither free nor at any concessionary rates”.

Detailing the circumstances that led to the reference, Mr Warburton said Mr Joukovski had “occasionally updated” him on efforts to “clear up his past dealings with the FCA”.

Mr Warburton said the businessman told him he had been advised to obtain “personal references”, and he was “delighted” to assist in a private capacity.

He said his “only error in this whole episode” was providing the reference on parliamentary paper, which he acknowledged was “inappropriate”.

Mr Warburton said he did not consider declaring the loan when he wrote to the FCA because it was “completely unrelated in any way” to the reference.

Russian oligarch ships – in pictures

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  Superyacht 'Amore Vero', which French authorities say is linked to the chief executive of Rosneft, a Russian energy company, moored near Marseille, France. Reuters

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  The 142-metre sail-assisted motor yacht 'Sailing Yacht A', owned by Russian tycoon Andrey Melnichenko, off Monaco harbour. Reuters

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  The 'Lady M', owned by Russian oligarch Alexei Mordashov, docked at Imperia harbour, Italy. European governments are moving against Russian oligarchs to pressure Russian President Vladimir Putin to back down on his war in Ukraine, seizing superyachts and other luxury properties from billionaires on sanctions lists. AP Photo

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  The 135m yacht 'Crescent' moored in Tarragona. The yacht cannot leave the north-eastern port while the police determine if it 'belongs or is under the control of' someone on the EU sanctions list. AFP

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  The superyacht Valerie was seized by the Spanish government. Spanish newspaper 'El Pais' reported that the ship is linked to Rostec State Corporation’s chief executive Sergey Chemezov. Bloomberg

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  The St Vincent and the Grenadines-flagged yacht 'Lady Anastasia' moored in Puerto Adriano in Calvia, on the island of Mallorca. AFP

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  The 'Quantum Blue', on the right, is owned by Russian billionaire Sergei Galitsky. AFP

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  The 'Axioma' superyacht belonging to Russian oligarch Dmitrievich Pumpyansky, who is on the EU's list of sanctioned Russians, docked in Gibraltar during Russia's invasion of Ukraine. Reuters

Ms Stone said she was “satisfied on the evidence that the loan had not influenced Mr Warburton’s words or actions as a member”.

She said the MP had agreed to rectify his breach of the rules.

Mr Warburton also wrote to her “accepting my decision, acknowledging and apologising for the breach”.

“As part of the rectification process, Mr Warburton also agreed to have the loan from Castlebrook Associates Ltd belatedly added to the Register of Members’ Financial Interests,” she said.

Mr Warburton is an independent MP.

He had the Conservative whip withdrawn this year after the emergence of allegations of sexual harassment and cocaine use. He is said to have denied any wrongdoing.

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