Rishi Sunak faces questions over link to firm operating in Russia

Rishi Sunak is coming under attack from political rivals over his wife's stake in an Indian multinational operating in Russia.

Labour said the chancellor has "very serious questions to answer" over Akshata Murty's shares in Infosys, a firm co-founded by her father.

Mr Sunak has said he has "nothing to do" with the company.

He has encouraged UK firms to sever ties with Russia to punish Vladimir Putin over his invasion of Ukraine.

Downing Street told reporters on Friday that Ms Murty's stake in Infosys was a "personal issue for the chancellor".

Software giant Infosys is one of India's biggest companies, with a presence in about 50 countries around the world.

It was co-founded by Ms Murty's billionaire father Narayana, who retired in 2014, but retains a small stake in it along with other members of his family.

Ms Murty's 0.9% shareholding in Infosys is thought to be worth more than £400m.

A spokesperson for Mr Sunak has said neither she nor any members of her family "have any involvement in the operational decisions of the company".

In 2016, Infosys set up an engineering centre in Moscow to support its customer, Ansaldo Energia, which was developing gas turbines to sell to Russian power plants, and other clients.

After Russia launched its invasion of Ukraine, many global IT giants, including Oracle and SAP, suspended operations in the Russian Federation, and expressed solidarity with the Ukrainian people.

Infosys is among those who continue to operate there, saying it has a "small team of employees based out of Russia that services some of our global clients, locally".

"We do not have any active business relationships with local Russian enterprises," it added in a statement.

"Infosys supports and advocates for peace between Russia and Ukraine," the company said, and had committed $1m to "relief efforts for the victims of war from Ukraine".

The UK has restricted its trade with Russia via sanctions in the wake of its invasion last month - a move not replicated by India.

Mr Sunak has said he would support UK firms that voluntarily cut ties with Russia in a bid to inflict "economic pain" on President Vladimir Putin.

He has also urged British investors to "think very carefully" about whether investments could support Mr Putin, and he believed there was "no argument for new investment in the Russian economy".

Pressed on Infosys's presence in Russia on Thursday, Mr Sunak told Sky News he had "nothing to do" with the company.

But on Friday, Labour's shadow transport secretary Louise Haigh said Mr Sunak had "very serious questions to answer on this matter".

"It is really quite shocking that these allegations have now emerged that Rishi Sunak's family itself is benefiting from business in Russia," she told BBC News.

"The chancellor has explicitly called on business to divest from Russia in order to inflict economic pain and ensure that the sanctions are as deeply felt as possible," she added.

Asked whether Mr Sunak should ask his wife to sell her shares, Ms Haigh replied: "Given that he's called on business to stop doing business in Russia, of course he should be ensuring that his own family follows that advice as well."

Liberal Democrat Treasury spokesperson Christine Jardine said Mr Sunak "needs to come clean and declare any potential conflicts of interest".

"Openness and full transparency are key given the risks posed by financial connections to Russia," she added.

"The public deserves full transparency on this issue. It cannot be one rule for the chancellor and another for everyone else."

Infosys has had connections in the past to Alfa Bank, one of Russia's biggest financial institutions, which was added to the UK's sanctions list on Thursday, having already been sanctioned by the US and EU.

In 2004, Mr Putin visited Infosys' headquarters in Bangalore, where he was given a guided tour by Narayana Murthy.

Mr Sunak met his future spouse while studying for a business degree at Stanford University in California. They married in 2009 and have two children.