The Tory party co-chairman’s luxury firm for oligarchs tonight said it has pulled out of Russia after fury at its activities.
A spokesperson for Quintessentially - when Ben Elliot is a director - told the Mirror the firm’s Russian arm has had its franchise licence withdrawn, and is no longer paying fees to the UK headquarters.
The spokesperson said: “It is one of several franchise operations - it’s not operated as a subsidiary. Within the last few days it has had its licence withdrawn, which means they can no longer trade or brand in any way as Quintessentially in Russia.”
As the UK government promised sanctions against “hundreds” more wealthy Russians in a week’s time, the spokesperson added: “Effectively, Quintessentially are out of Russia.”
Asked for the reason for pulling out, he admitted it was likely a mixture of “reputational, moral, business”.
He said the Russian arm had 60 staff, saying: ”The length of time it took to make the decision reflects the fact they were mindful of 60 people’s livelihoods and they needed to be told.”
Quintessentially specialises in providing experiences and services to wealthy clients.
Ben Elliot, the co-chairman of the Conservative Party who helps source donations from billionaires, co-founded the firm and is a director.
Labour have long been demanding the Tories sack Mr Elliot over his business activities, accusing him of “blurring the lines between private business and political office.”
Labour MP Chris Bryant today demanded an investigation into Mr Elliot.
Speaking in the Commons, he claimed the firm “has been providing restaurant recommendations in Crimea” - despite the fact it is illegal for UK firms to provide “services relating to tourism in Crimea”.
The allegation was first made in The Times, which said Quintessentially recommended a restaurant in Yalta in a web post.
The spokesperson for Quintessentially insisted: “Categorically they are not giving our recommendations for restaurants in Crimea…. I’m told by the company that that is categorically not the case.”
But Mr Bryant told the Commons: “Following the annexation of Crimea, we made it a criminal offence to support tourism activities in Crimea.
“But Quintessentially, which is run by Ben Elliot, has been providing restaurant recommendations in Crimea to Russian oligarchs.
“Surely he should be investigated, and everybody should be distancing themselves from him now.”
Shadow home secretary Yvette Cooper responded: “The information he has just provided is actually deeply disturbing.
“There is a huge responsibility on all of us and particularly the government to make sure there is no conflict of interest in terms of the source of any political donations or any role in the party and make sure there is a proper distancing from the appalling activities of corrupt Russian elites.”
The Quintessentially spokesperson claimed the decision was made by the board rather than Mr Elliot personally, and was taken “within the last week”.
Last year the Registrar of Consultant Lobbyists warned Mr Elliot “to be cautious about the possibility of engaging in consultant lobbying activity (perhaps unintentionally) by not making a clear enough distinction between his role as a director of Quintessentially and his other activities connected to government.”
Labour called for him to be sacked, but he is still listed as a co-chairman of the Conservatives on the party’s website.
The Conservative Party declined to comment, referring queries to the Quintessentially spokesman instead.
It came after Foreign Secretary Liz Truss declared Britain will be able to sanction “hundreds of individuals” next Tuesday if emergency legislation is rushed through Parliament in a week.
The Economic Crime Bill moves to the Lords this week and could be swiftly deployed if it cleared all its Westminster stages, she told the Commons Foreign Affairs Select Committee.
It would allow the Government to target figures already sanctioned by the US and EU.
Ms Truss told MPs: "If Parliament passes the legislation by Monday March 14 we will be able to sanction the hundreds of individuals by next Tuesday, March 15.”
She blamed amendments by opposition peers to previous laws for hampering attempts by ministers and officials to be speedier and more wide-ranging with sanctions under the current system.
