The Daily Telegraph

Gove amends laws to let councils sever ties with Russian firms

- By Ben Gartside

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.”

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