Shapps orders oligarch-backed company to sell UK broadband service provider on national security grounds | Business news

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The business minister has ordered a sanctioned Russian oligarch-backed investment firm to sell regional broadband provider Upp, citing national security concerns.

Grant Shapps ruled that the LetterOne property, known as L1, posed a national security risk.

Among its investors is the sanctioned Russian businessman Mikhail Fridman.

The decision was made under provisions of the National Security and Investment Act that took effect earlier this year before Russia’s war in Ukraine began.

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It allows the government to screen and potentially block acquisitions and investments in sensitive sectors.

Russian President Vladimir Putin’s war has led to a series of Western sanctions against Russian individuals, banks and strategic industries.

Just last month, Shapps sparked outrage in South Wales over his decision to force the Chinese owners of small Newport Wafer Fab chips factory to sell a majority stake.

L1 has been told it must sell 100% of Upp, which provides services across the East of England and East Midlands, within a specified period and by following a specified process.

Upp is also required to complete a full security audit of its network before selling.

“We believe that L1’s ownership of OB does not pose a threat to national security in any way,” L1 said in response.

“L1 is not sanctioned and has taken swift and decisive action to put in place strong measures to distance L1 from its sanctioned shareholders.

“They have no role in L1, and they have no access to buildings, infrastructure, people, funds or benefits of any description.”

Upp, formerly Fiber Me Limited, bought in 2021.

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