SCOTLAND is risking funding Russia’s invasion of Ukraine with taxpayer cash, an MSP has warned.
Greens MSP Ross Greer has demanded an “urgent review” of grants issued by funding quango Scottish Enterprise after it emerged millions had been doled out to an Angus-based firm which continued to trade with Russia for months after the invasion.
He has written to John Swinney, the acting Finance Secretary, after The Ferret revealed Baker Hughes - the recipient of £4.9 million in Scottish Enterprise grants - had sold oil and gas drilling equipment to a private Russian gas producer called Novatek.
The company said the money was awarded in 2019 and was used to expand its Montrose operations but not allocated to any particular projects.
The firm said its last shipment out of Montrose to Russia was made in June 2022 – three months after the Scottish Government had urged businesses to stop trading with the country in response to the Ukraine war.
Baker Hughes announced on March 19, 2022 - nearly a month after Russia invaded Ukraine - it would halt new investments in the country, but would fulfill "current contractual obligations".
It sold its oilfield services business in Russia in August to its local managers who would start a new, independent firm.
Import documents seen by The Ferret revealed that goods from Baker Hughes filed with the Russian Customs Service on September 11, 2022 were worth £21m.
In his letter to the SNP minister, Greer suggested the firm could have “played an indirect role in supporting Putin’s invasion”, noting that Russia used its energy sector as a “geopolitical weapon” as well as “a significant economic asset whose returns allow for the financing of the Russian war machine”.
He said: “Western equipment supplied to Russia has undeniably helped maintain their domestic oil and gas sector, which has long been used as a geopolitical weapon by the Kremlin as well as a significant economic asset whose returns allow for the financing of the Russian war machine.
“It would be extremely disappointing if a multinational company with operations in Scotland and which is funded partly by Scottish taxpayers money has played an indirect role in supporting Putin’s invasion.
“I am writing to you today to ask for an urgent review of all grants issued by Scottish Enterprise to ensure that our public money is not being used to support companies that continued to trade with Russia after February 2022.
“If current policy allows for companies like this to continue receiving public funds, then I would ask for the policy to be reviewed and strengthened.”
There is no suggestion Baker Hughes has broken the law.
In a statement, Greer added: “It is almost a year since Russian forces began their immoral and illegal invasion of Ukraine. Since then thousands of people have been killed, millions have been forced to flee and overwhelming evidence of Russian war crimes has emerged.
“Every European government has a responsibility to match their rhetoric with action when it comes to standing in solidarity with Ukraine and against Putin’s war machine. That means ensuring that no public funds are used to support companies which may, however indirectly, be enabling the Russian regime.
"That is why I have called for an urgent review of all grants issued by Scottish Enterprise to ensure our public money is not being handed to companies that continued to trade with Russia after the invasion began.
"If current policy allows for companies like this to continue receiving public funds, then that policy must be reviewed and strengthened.
“Public money must be used for the public good, not to fund those that are allegedly working or trading with despots, dictatorships and human rights abusers.”
A spokesperson for Baker Hughes told The National: "As we first stated in March 2022, Baker Hughes condemns violence, and the war in Ukraine is of grave concern.
"The order that was shipped from Montrose was part of a wider contract that was booked in 2019 and covered many pieces of equipment over multiple phases.
"As is common with long-cycle oil field equipment, many of those pieces of equipment can take up to two years to design, procure, manufacture and supply.
"The £4.9m of Scottish Enterprise funding in question was first provided to Baker Hughes in 2019 as part of the expansion of our Montrose facility.
"The funding has supported projects exported to multiple countries over multiple years, and it has not been allocated toward any specific project."
The Scottish Government was approached for comment.
