Labour makes grovelling apology to long-standing donor after cutting ties when he was wrongly linked with Russian bank (and keeps his money)
- Party initially said it would return £16,000 received from Ian Rosenblatt
- Law firm he founded was criticised for work with Moscow-based VTB Capital
- But it emerged work was approved by Treasury and paid for by Bank of England
Labour has apologised to a long-standing donor for telling him to keep his money over alleged links to a sanctioned Russian bank.
Earlier this month the party said it would return £16,000 received from Ian Rosenblatt after the law firm he founded was criticised for work with Moscow-based VTB Capital.
But it has now apologised and decided to keep the money after an internal review found that it had acted too hastily in responding to the story in the Daily Telegraph.
Mr Rosenblatt retains a stake in Rosenblatt, but he is no longer a director and had no active role in the work.
Additionally, its work with VTB was limited to acting for Teneo, the administrator of the bank’s defunct UK arm, and had been approved by the Treasury and paid for by the Bank of England.
A Labour source confirmed it had apologised to Mr Rosenblatt, who had complained that he had been ‘thrown under the bus’.
Earlier this month the party said it would return £16,000 received from Ian Rosenblatt after the law firm he founded was criticised for work with Moscow-based VTB Capital.
Mr Rosenblatt has given more than £100,000 since 2013. He has donated to the central party since Ed Miliband was leader and also made individual donations to Sir Keir Starmer and Owen Smith, who challenged Jeremy Corbyn for the leadership in 2016.
‘We are very grateful for Mr Rosenblatt’s ongoing support and regard him as an entirely appropriate donor to the Labour Party, the source added.
‘We have reviewed and changed some of our donation processes.’
Mr Rosenblatt has given more than £100,000 since 2013. He has donated to the central party since Ed Miliband was leader and also made individual donations to Sir Keir Starmer and Owen Smith, who challenged Jeremy Corbyn for the leadership in 2016.
After Labour originally said it would return his money, he told the Times: ‘To say I have profited from Russia is ridiculous.
‘I don’t know every bit of work going on in a law firm that employs 250 people; I’m not involved in the day-to-day management…
‘It was a unilateral decision. The whole thing happened in about an hour. It only became a story when the Labour Party said it would return the money. It sounds like I am guilty of doing something wrong.’
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