Gove amends laws to let councils sever ties with Russian firms
MICHAEL GOVE has amended laws so that councils can sever ties with Russian companies including a software company founded by a Kgb-trained cybersecurity expert.
Kaspersky has held contracts with a dozen English councils in the last decade, with five of those thought to still be active, according to government procurement company Tussell. It has been accused of having a close relationship with the Kremlin.
Local authorities in England are obliged by law to choose the best-value provider when outsourcing services, irrespective of political objections. However, Mr Gove, the Communities Secretary, has brought in a new statutory instrument making an exception for contractors from Russia or Belarus.
Earlier this year, the National Cyber Security Centre (NCSC) advised public sector bodies to reconsider potential exposure to Russian technology as the invasion of Ukraine began.
Kaspersky’s anti-viral software has not been used on national government computers since 2017 amid political concerns.
Under the new legislation, local authorities are not obliged to terminate contracts. But the Government is privately insisting businesses linked to the Russian or Belarussian states should not benefit from public contracts.
In March, the Cabinet Office asked central government bodies to review contracts with Russia and Belaruslinked firms, and to consider whether the deals could be terminated.
The new statutory instrument applies to local and parish councils in England and brings local procurement law and the ability to break contracts into line with current legislation for central government.
Some councils and procurement bodies have raised concerns about the cost of breaking contracts with Russianlinked firms as a result of inflation.
However, several councils – including Merton, Telford and Wrekin – publicly said they would cut ties with Russian energy supplier Gazprom in the wake of the invasion of Ukraine. Subsequently, Gazprom’s UK arm was taken over by the German government.
A spokesman for the Department for Communities said: “Businesses with links to Putin’s murderous regime should not benefit from taxpayers’ money. These measures will allow councils to terminate existing contracts – ensuring public money does not fund these organisations or Putin’s barbaric war machine.”
A spokesman for Kaspersky said: “As an international cybersecurity company, Kaspersky contributes significantly to cybersecurity and resilience in the UK, Europe and around the world. Kaspersky is a privately held group of companies, operating through a holding registered in London.”
He added: “Kaspersky pursues the highest ethical standards, focuses on global collaboration, and promotes intensive exchange and information sharing on cybersecurity.”