British telecoms firm awarded Russia deals

A UK telecoms provider has been awarded Russian state contracts from agencies controlled by sanctioned individuals, including an ally of Vladimir Putin, The Telegraph can reveal.

RETN Capital says it has limited its exposure to Russia since the invasion of Ukraine and that it is in compliance with sanctions. However, in response to Telegraph inquiries it said it would ask its Russian subsidiary to “reconfirm” its position. The company’s revenue from Russia rose 39pc to €24.1m (£20.6m) between 2021 and 2022, its annual reports show. Its Russian subsidiary received contracts from state entities, which have been sanctioned since the war in Ukraine, according to Sparkinterfax, a database of official contracts.

In December 2022, RETN’S Russian arm won a contract with the Kurchatov Institute, a Russian state-controlled aviation research agency that is sanctioned by the UK and US. Its general director, Mikhail Kovalchuk, and his brother Yury, a close ally of Putin, are subject to sanctions.

One of the main customers of RETN’S Russian subsidiary is PJSC Rostelecom, which is partially state-owned.

The Russian subsidiary is also a client of the Russian bank Rosbank. Both Rosbank and Rostelecom are sanctioned by the West and Ukraine.

The primary institutional investor in RETN is the Uk-based investment fund Njord Partners whose co-owner, Jakob Kjellberg, is chairman of the board.

His partner in Njord, Arvid Trolle, who donated £20,000 to Priti Patel in 2022 while she was home secretary, has reposted content on Twitter that attacks Ukraine and Volodymyr Zelensky.

A spokesman for RETN said: “RETN Capital is fully in compliance with all relevant international sanctions. We will raise the alleged transactions with RETNNET, our Russian subsidiary, and ask it to reconfirm full compliance with our group sanctions policies.”

Njord Partners did not respond to a request for comment.