Ministers mull powers to block London listings

Ministers could gain the power to block foreign companies listing on the London Stock Exchange on national security grounds. The Treasury is set to open a consultation on new powers after MPs called on the Government take action, The Times reported. The move follows the 2017 listing by Russian energy company EN+, which is associated with oligarch Oleg Deripaska. The Financial Conduct Authority was powerless to stop the listing despite Mr Deripaska being subject to US sanctions and being accused of close ties with President Putin. A report by the Commons foreign affairs select committee criticised the Government for inaction, saying it was unfair to expect the financial watchdog to identify and prevent threats to national security. The Treasury is expected to set out the justification for blocking listings in specific scenarios, including where the Government believed a foreign state was trying to undermine the LSE's reputation or would help a hostile state access commercial and state secrets. Such powers would require legislation to be passed. Tom Tugendhat, chairman of the foreign affairs committee, said: "Britain's markets underpin our economy and our global reach. That's why we need to be careful who uses them. Dirty money and asset stripping have become a new form of attack on our country." The Treasury's move comes in the wake of sanctions imposed on embattled Belarusian President Lukashenko and other senior members of his government following a rigged election in August.