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UK National Lottery operator Allwyn’s parent company will cut ties with Russian state-owned enterprise following parliamentary scrutiny.

KKGC, an investment fund owned by Czech billionaire Karel Komárek, announced last Tuesday (28 May) its MND subsidiary would sever its remaining ties to Russian state-owned enterprise Gazprom.

The company had faced questions in parliament regarding its connections to the oil giant following the Gambling Commission’s 2022 decision to award it the £6.5bn National Lottery contract.

Concerns centred on KKGC’s MND business, which owns Moravia Gas Storage, the operator of the Czech Republic’s Dambořice gas storage facility.

The business was previously a 50-50 joint venture with Gazprom, but the state-owned company’s share was diluted to 2.67% in March 2024.

Now KKGC says its MND subsidiary will purchase the remaining stake from Gazprom, with the decision entered into the Czech commercial register on 25 May.

KKGC said: “MND, as the majority shareholder, already had full shareholding, management, and operational control of MGS. With this decision, Gazprom Export ceases to be a shareholder in MGS.”

The deal has already been approved and is due to complete at the end of June, according to a letter seen by the Guardian.

The agreement brings an end to the controversy which has rumbled on for the more than two-year period following the UKGC’s March 2022 decision to name Allwyn its “preferred bidder” for the lottery contract.

A Gambling Commission official previously told MPs in a 2022 DCMS select committee that the regulator expected to see ties severed with Gazprom within days.

Gazprom is not itself sanctioned by the UK, although many of its executives are and the company is considered by many to be directly controlled from Moscow.

Many western companies and governments cut ties with Gazprom following the February 2022 Russian invasion of Ukraine.

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