Rees-Mogg profiting from China and Russia
Firm’s £12m holdings in gas & pharma
Multi-Millionaire tory Jacob rees-Mogg is profiting from investments in a russian gas giant and a Chinese pharma firm.
Last year the Cabinet minister took an estimated £600,000 in dividends from Somerset Capital Management, the firm he co-founded before becoming an MP and still has shares in.
Labour deputy leader Angela Rayner has national security concerns about dealing with companies in countries that are Britain’s enemies.
And MI5 chief Ken McCallum yesterday warned Russia and China were desperate to gain a foothold in Parliament by targeting MPs.
Ms Rayner said: “From Vladimir Putin’s puppets to private Chinese health corporations, Rees-Mogg’s investments raise serious questions about propriety and security.
“Ministers cannot be allowed to influence policy decisions they have financial interests in and any conflicts should always be properly notified.
“Labour would overhaul the system and establish an independent Integrity and Ethics Commission.”
As a minister Mr Rees-Mogg, 52, is banned from playing any role in Somerset’s business affairs.
But he is allowed to pocket dividends as a sleeping shareholder.
Now Minister for Brexit Opportunities and Government Efficiency, he will be sweeping away EU rules. He will also be looking at emerging markets for UK trade deals.
Steve Goodrich of Transparency International said: “It’s risky business when ministers hold briefs relating to their financial affairs.”
Somerset invests £6.5million on behalf of its clients in the Chinese pharma company WuXi AppTec, which stands to benefit as medicines are deregulated following Brexit.
In 2020 the Sunday Mirror broke news Somerset called the pandemic a “once-in-a-generation” chance of “super-normal returns” for investors.
Somerset, which manages assets of over £4billion, also invests £5.7million in Russia’s largest privately owned gas
giant, Novatek PJSCGDR. It is chaired by Vladimir Putin crony Leonid Mikhelson. He and the firm will face sanctions if Russia invades Ukraine.
Expanding in Britain, WuXi bought Oxford gene therapy firm Oxgene in March 2021 in a £99million deal.
Joshua Ausden, of Somerset, said: “Jacob Rees-Mogg no longer works at Somerset Capital and has had no role in the investment decisions for over a decade. Any partnership interest in
Somerset is held in abeyance, in accordance with the ministerial code.
“Somerset funds, including Somerset Asia Income Fund and Somerset Emerging Markets Dividend Growth Fund, are solely mandated to invest in Asian and Emerging Markets.”
In 2017 the Sunday Mirror revealed devout Catholic Mr Rees-Mogg’s firm had made money from abortion pills, despite his opposition to abortion even for pregnancies caused by rape.