EU questions rock boat for Mandelson

PETER MANDELSON could be called back to Brussels to answer questions about his relationship with Russian oligarch Oleg Deripaska during his time as the EU’s Trade Commissioner.

CONCERNS Lord Mandelson CONCERNS: Lord Mandelson

Members of the European Parliament’s powerful trade committee want to probe Lord Mandelson’s links to the billionaire, whose aluminium company benefited from a £50million cut in EU tariffs three years ago.

The Business Secretary was facing fresh questions last night after confirming that he had first met Mr Deripaska in 2004, two years earlier than previously suggested.

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Tory MEP Syed Kamall has written to Lady Ashton, who replaced Lord Mandelson in Brussels, calling for a probe into a possible “conflict of interest” during his time as Europe’s Trade Commissioner.

Mr Kamall, who sits on the European Parliament’s Trade Committee, wants its chairman Helmut Markov to write to Lord Mandelson asking him to appear before the watchdog group. He said: “The facts concerning his relationship with Mr Deripaska appear to keep changing. The best thing he can do is return to clear things up.

“Every few days there are new questions that come to light. Clearly there is a perception of a conflict of interest. I am not accusing Lord Mandelson of doing anything wrong, I am just saying he should clear up these questions.”

However, Mr Kamall said the hospitality Lord Mandelson had enjoyed aboard Mr Deripaska’s yacht in Corfu created an appearance of a conflict of interest.

The EU’s code of conduct for Commissioners says they should rule out all such risks to help “guarantee their independence”.

Commissioners have to register all gifts worth more than £120, but whether private hospitality has to be registered is a grey area.

Lord Mandelson refused to answer questions about his relationship with Mr Deripaska outside his London home yesterday.

Today he will lead a business delegation on a four-day visit to Russia. Mr Deripaska is reported to have been dropped from the list of local businessmen who will meet the British party.

Gordon Brown batted aside the issue yesterday while campaigning in Glenrothes ahead of the forthcoming by-election.

He  said: “This was already investigated by the European Commission when he (Lord Mandelson) was a Commiss-ioner and the answer was nothing untoward happened.”

Lord Mandelson was also facing calls for an inquiry at Westminster after releasing a letter confirming reports he had dined with Mr Deripaska in Moscow in 2004. His spokesman had suggested he did not meet the Russian until 2006, after the aluminium deal was completed.

Liberal Democrat MP Norman Baker said: “The earlier statement about Mr Mandelson’s meetings with Mr Deripaska was clearly spin, which is now becoming un-spun. Mandelson does not say whether these meetings were in an office in Brussels with other EU officials, or on his yacht eating canapes.

“He must urgently publish a full list of each meeting detailing where these meeting were and what was discussed. If Mandelson really played no part in the aluminium negotiations, then what was he doing as EU Trade Commissioner?” In his letter yesterday, Mr Mandelson said the confusion over the date he met Mr Deripaska was a simple mix-up. He said he made “no personal interventions to support the commercial interests of Mr Deripaska”.

He strongly defended his meetings with such figures, but said he would take advice on his future meetings with businessmen.

“I met a great number of business people as Trade Commissioner,” he wrote. “In managing my Department’s business as Secretary of State I will, of course, in line with the Ministerial Code, ensure that no conflict of interest, or perception of such, arises from any of my past, or indeed future, contacts.”

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