Shapps orders oligarch-backed firm to sell UK broadband provider on national security grounds | Business News
The business minister has ordered an investment company backed by sanctioned Russian oligarchs to sell regional broadband provider Upp, citing national security concerns.
Grant Shapps ruled that ownership of LetterOne, known as L1, was a national security risk.
Its investors include sanctioned Russian businessman Mikhail Fridman.
The decision was made under the terms of the National Security and Investment Act that went into effect earlier this year before the start of Russia’s war in Ukraine.
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It allows the government to scrutinize and potentially prevent acquisitions and investments in sensitive sectors.
Russian President Vladimir Putin’s war has led to a flurry of Western sanctions against Russian individuals, banks and strategic industries.
Just last month, Mr Shapps sparked anger in South Wales over his decision to force the Chinese owners of the Newport Wafer Fab microchip factory to sell a majority stake.
L1 was told it had to sell 100% of Upp, which provides services across the East of England and the East Midlands, within a certain period of time and following a specific process.
The order also forces Upp to complete a full security check for its network before selling.
“We believe L1 ownership of Upp is not a threat to national security in any way,” L1 replied.
“L1 was not sanctioned and took swift, decisive action to introduce strong measures to separate L1 from sanctioned shareholders.
“They have no role in L1, no access to facilities, infrastructure, people and funds or benefits of any kind.”
It bought Upp, formerly known as Fiber Me Limited, in 2021.
