News

Investors are keenly awaiting SSE’s interim results on Wednesday, hoping for an update on the FTSE 100 energy group’s spending plans and progress on its renewable projects.

SSE, one of the UK’s largest offshore wind developers, recently completed several significant projects, including the 443-megawatt Viking onshore wind farm, the Shetland subsea link, which will connect the Shetland Islands to the British transmission grid, and the Slough Multifuel energy-from-waste power station.

The results could also provide insight into potential delays at Dogger Bank A, one of the world’s largest offshore wind farms. Together with its two sister sites, the Dogger Bank project is expected to deliver a combined capacity of 3.6 gigawatts. However, the timeline for Dogger Bank A’s completion has already been pushed back to the second half of next year, and any further setbacks could affect SSE’s projected growth.

SSE has committed to an ambitious growth strategy, aiming to increase earnings by an annual compound rate of 13-16% and raise its dividend by 5-10% by 2027 compared to 2022 levels. To fund these renewables projects, the company reduced its dividend for this year to 60p per share.

With significant developments in renewables, SSE’s results will be closely watched as it pursues both sustainable energy growth and returns for shareholders. Investors will be looking for updates on spending, timelines, and how SSE plans to deliver on its substantial growth targets in a rapidly evolving energy market.

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Investors anticipate SSE’s spending plans amid completion of key energy projects

NatWest has purchased £1 billion of its own shares from the UK Treasury, lowering the government’s stake in the FTSE 100 lender to just over 11%.

This buyback, the second of its kind in 2024, saw NatWest acquire 263 million shares at a price of 380.8p each, a step CEO Paul Thwaite describes as an “important milestone on the path to full privatisation.”

The government’s stake in NatWest, formerly Royal Bank of Scotland, was as high as 84% after the 2008 financial crisis bailout. Over recent years, the state has gradually reduced its ownership through share sales to institutional investors and buybacks. In 2024 alone, NatWest has repurchased £2.2 billion of shares from the Treasury, cutting the government’s holding by over two-thirds since December.

The Labour government cancelled plans for a public share sale of NatWest in June, which was expected to offload part of the government’s 20% stake but was scrapped due to concerns it could cost taxpayers up to £450 million. The “Tell Sid”-style public offering was initially proposed by the previous Conservative government.

The Treasury’s latest sale continues the trend of privatising the bank, which has been a key objective since the taxpayer-funded bailout over a decade ago.

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Natwest buys back £1bn in shares from Treasury as government stake drops to 11%

Lloyds Banking Group faces mounting pressure from MPs, business groups, and a staff union to release the full, unredacted findings of the Dame Linda Dobbs review, a report examining Lloyds’ handling of a £1 billion fraud at HBOS, which the bank acquired in 2009.

The delay has drawn criticism, with figures like Lord Tyrie, former Treasury committee chairman, labelling the protracted process as “itself becoming a scandal.”

The review, commissioned in 2017 and initially expected to take a “matter of months,” aims to investigate whether Lloyds covered up the HBOS Reading branch fraud, where bankers and consultants exploited reckless lending practices to steal from the bank. The scandal wreaked havoc on small businesses, leaving victims in financial ruin and resulting in the jailing of six people in 2017.

Despite the initial commitment in 2018 by Lloyds to share the review’s findings, the bank has yet to clarify whether this will include the full report. Former Treasury committee chair Baroness Morgan of Cotes expressed disappointment, stating she “expected to see a full, unredacted report—not just the conclusions.”

Conservative MP Kevin Hollinrake, former business minister, has joined the call for transparency, urging Lloyds CEO Charlie Nunn to release the full report. In a letter, he wrote, “This report was commissioned to bring clarity, transparency and accountability following one of the most significant banking scandals in recent memory.” Hollinrake warned of the long-term implications of withholding information from the public.

Lobbying groups SME Alliance and Transparency Task Force, representing victims of the fraud, have expressed similar frustrations, emphasising that Lloyds should not control the publication of a report into alleged misconduct within its own operations. SME Alliance stated, “Lloyds should not be allowed to control the publication strategy for a report looking into an alleged cover-up that Lloyds itself perpetrated.”

Lord Tyrie added that the committee has a “great opportunity to reassert parliament’s commitment to transparency.” He suggested that if Lloyds does not cooperate, MPs could compel key witnesses to testify or apply additional parliamentary pressure to access the full report.

BTU, the largest independent union for Lloyds staff, has written to Treasury Committee chair Dame Meg Hillier, requesting that Dobbs appear before MPs to explain the delays. Dobbs, who favours transparency, has indicated that the availability of witnesses has contributed to the report’s extended timeline, now stretching over six years.

In response to the latest calls for transparency, a Lloyds spokesperson reiterated the bank’s commitment to sharing the review’s findings but stopped short of confirming the release of an unredacted report.

The Treasury committee, which has remained silent on the issue, may face increasing pressure to intervene and ensure that the full details of the report are made public. With the review ongoing, questions of accountability and transparency hang over Lloyds, as MPs and campaigners alike demand answers for the scandal’s many victims.

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Pressure mounts on Lloyds to release full report on £1bn HBOS fraud scandal

The UK could face a major economic hit if President-elect Donald Trump enacts a 20% blanket tariff on all imports to the US, potentially costing British exporters up to £22 billion, according to new research from the Centre for Inclusive Trade Policy (CITP) at the University of Sussex.

Economists estimate that UK exports could decline by more than 2.6% as trade with the US falters, creating a ripple effect that would further strain the global economy. This drop in trade would amount to an annual decrease of 0.8% in the UK’s economic output, CITP researchers suggest.

The sectors likely to be hardest hit include fishing, petroleum, mining, pharmaceuticals, and electrical goods, each potentially seeing export declines of up to 20%. Beyond direct exporters, industries like transportation, insurance, and finance that support UK trade could also feel the impact of diminished trade flows.

Researcher Nicolo Tamberi warned that the possibility of these tariffs “is certainly there,” noting Trump’s long-standing preference for using tariffs as a bargaining tool. Former UK ambassador to the US, Lord Darroch, voiced similar concerns, stating, “I’m a pessimist… Trump did tariffs in his first term on steel and aluminium. He wants to go much bigger this time. He believes in it—it’s not a bluff.”

If imposed, Trump’s tariffs could force the UK to make tough decisions. One option would be to negotiate directly with the US for an exemption, while another would involve partnering with other Western allies to show Trump’s administration that American exporters could also face retaliation.

Foreign Secretary David Lammy underscored the need to convey the importance of free trade to the US, stating, “Hurting your closest allies cannot be in your medium or long-term interests.” However, Lord Darroch’s comments suggest that the UK cannot rely on diplomacy alone to stave off tariffs.

The economic implications extend beyond the UK, with the IMF recently warning that a large-scale trade war could shrink the global economy by as much as 7%—equivalent to the combined economies of France and Germany.

While some analysts believe Trump’s tariff strategy may include concessions for US allies, others, such as former Trade Representative Robert Lighthizer, are staunch supporters of an aggressive approach. Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey have reiterated their commitment to advocating for free trade, warning that protective measures could raise inflation and undermine economic stability.

In certain sectors, however, UK firms could see an upside. If Trump imposes heavy tariffs on Chinese goods, British textile and clothing businesses may gain ground as competition from Chinese imports decreases, providing a potential boost to the domestic market.

As the UK government navigates this complex trade landscape, the potential for higher tariffs casts a shadow over future export strategies, underscoring the challenges that lie ahead in preserving free trade in a shifting global economy.

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UK could lose £22bn in exports if Trump imposes 20% tariffs, warn economists

The price of bitcoin has surpassed $80,000 (£62,000) for the first time, buoyed by Donald Trump’s recent election victory and Republicans moving closer to full control of the US Congress.

With expectations for a more crypto-friendly administration, the world’s largest cryptocurrency has surged, marking an over 80% increase in value this year.

Trump’s campaign promises included making the US “the crypto capital of the planet,” and investors are now anticipating regulatory changes that could open up the cryptocurrency sector. He pledged to establish a strategic bitcoin stockpile and appoint regulators supportive of digital assets, potentially scaling back restrictions that have impacted the industry.

One of Trump’s expected early actions is the removal of current SEC chair Gary Gensler, who has led a robust crackdown on the crypto industry. Gensler, appointed by Joe Biden in 2021, has introduced regulations aimed at tightening oversight of digital assets—a stance that has clashed with the interests of crypto advocates. Trump’s potential replacement of Gensler with a crypto-friendly appointee could bring substantial changes to the sector.

“If the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector,” said Matt Simpson, market analyst at StoneX Financial. He added that, while bitcoin could surge to as high as $100,000, “it is still vulnerable to nasty selloffs along the way.”

The bullish sentiment has extended to other digital assets, including dogecoin, which has gained traction partly due to high-profile support from Trump ally Elon Musk. The Tesla CEO has publicly backed dogecoin on numerous occasions, further adding to its popularity.

Trump’s broader economic agenda, which includes tax cuts and reduced regulation for businesses, has spurred investment interest across various sectors. Should the Republicans achieve control over both the House and Senate, the president-elect’s policy proposals could face fewer obstacles in passing through Congress.

As markets respond to these anticipated policy shifts, some analysts caution that while deregulation could energise the crypto industry, it may also lead to increased volatility. With digital assets continuing their rise, the coming months could be pivotal for the future of cryptocurrency in the United States.

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Bitcoin surges past $80,000 as Trump nears control of Congress and pledges crypto deregulation

Boxing icon Chris Eubank has taken on a new challenge, stepping into the tech space with the launch of Trust Huddle —a pioneering platform that promises to transform community fundraising and administration.

Designed to empower communities with easy-to-use tools on their phones, Trust Huddle is a free, all-in-one solution for groups of all kinds, from sports clubs and PTAs to local charities and social groups.

Trust Huddle is already making a big impact, with over 200 school PTAs and 3,000 users onboard since its soft launch. The platform’s unique approach simplifies community organisation by providing a centralised hub for communication, event management, and fundraising—all accessible from a mobile device.

“I’ve always believed in the power of unity, and Trust Huddle is the ultimate tool for driving communities forward,” said Eubank. “This platform empowers people to achieve more—raising funds, communicating, and thriving together. I couldn’t be more excited about changing the way communities work.”

Developed by Trust Huddle founder Paul Broadbent, the platform has been carefully crafted over the last 18 months with contributions from a dedicated team of tech specialists. Broadbent, known for his work on high-profile projects like the Konexo website by Eversheds Sutherland and digital initiatives for the East Midlands Academy Trust, created Trust Huddle to serve a wide range of communities. It’s ideal for PTAs, sports clubs, local parishes, charities, and social groups looking for a cohesive tool to connect and engage members.

Powerful Features Designed to Empower Communities:

Trust Huddle provides an impressive suite of tools that outshine other platforms in the market:

Community Marketplace: Members can buy and sell pre-loved items, with a portion of sales going back to the community. Sellers receive full payment, while buyers pay a small 5% handling fee (plus 20p).
Event Ticketing and Online Shops: From fundraising events to branded merchandise, Trust Huddle’s e-commerce capabilities create new revenue streams for schools, clubs, and other groups.
Subscription Management: Clubs can automate recurring payments for memberships and services, reducing administrative burden.
Automated Communication: The platform sends automated updates and emails to keep all members informed about key events and announcements.

Trust Huddle’s intuitive design makes it a seamless tool for anyone running a community, with 100% free access for all users and secure payment processing through Stripe.

“Trust Huddle isn’t just about keeping people connected—it’s about helping communities soar,” Eubank said. “Whether you’re managing a sports club, a charity, or a social group, this platform brings your community to life and makes fundraising effortless.”

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Boxing legend Chris Eubank launches Trust Huddle, set to transform community fundraising

You flip open your laptop, launch your browser, and start working—blissfully unaware of the complex dance happening behind the scenes to make this possible.

As you access files in the cloud, join online meetings, and use SaaS apps, two key developments in enterprise networking converge to enable your seamless digital experience: Network-as-a-Service (NaaS) and Secure Access Service Edge (SASE).

But what exactly do these terms mean, and how do they relate? This blog will bring you up to speed on how NaaS relates to SASE, where they converge, and what it all means for your business and its network. Let’s jump in.

The Rise of NaaS

Remember when enterprises had to purchase, install, and manage networking hardware like routers and switches? Those days are fading fast. With NaaS, you can now consume networking across a vast area network (WAN) as a cloud service, just like SaaS.

NaaS has unlocked several benefits:

Agility: Scale connectivity up or down to meet your needs without costly hardware. Add a new office in minutes.
Cost Savings: Pay only for what you use instead of overprovisioning resources. Operational costs are replaced with a per-user subscription.
Simplicity: Instead of managing complex hardware and software, you can automate and analyze your network with a few clicks.

As you look at legacy networks, you realize how much hardware and manual effort used to be required just to route traffic for a distributed workforce. NaaS has changed the game.

The Limitations of DIY Networking

In the past, companies had to invest in networking equipment, from routers to switches, configure policies and protocols, and manage installations and updates. This required dedicated in-house IT staff to install, monitor, and maintain networks, and costs quickly ballooned out of control.

With dispersed offices and remote employees accessing cloud apps, legacy networks are strained to provide secure, high-performance connectivity. Latency, jitter, and lack of visibility into network behavior created huge challenges.

Troubleshooting issues was painful, like finding the source of packet loss between different network segments. Hours turned to days spent correlating log files and config backups, trying to pinpoint where the breakdown occurred.

As traffic patterns became more dynamic, the static nature of hardware-centric networks couldn’t adjust. Adding new offices meant truck rolls for equipment and manual configuration. Change requests like adding subnets or VLANs took weeks of planning and testing.

Network disruptions had outsized impacts, yet locating the problem and implementing fixes was slow. The infrastructure needed to be built for the flexibility demands of modern business.

How NaaS Changes the Game

NaaS solutions shift networking to the cloud, providing access to enterprise-grade connectivity and features as a subscription service. Businesses can deploy software-defined networks managed through a central dashboard.

With NaaS:

Agility is baked in – Spin up new networks in minutes, not months
Costs shift – Move from CapEx to more flexible OpEx
Workforces are untethered – Secure and optimize remote access
Innovation accelerates – Leverage cloud scale and automation

Now, companies can adjust network capacity on demand to support shifts in business needs or traffic spikes from new offices coming online. Changes take effect programmatically instead of manually.

Networking teams leverage sophisticated analytics with machine learning-driven insights to optimize traffic, resolve preemptive issues, and improve cloud application performance.

What is SASE?

While NaaS transformed the LAN, SASE (pronounced “sassy”) is revolutionizing the WAN. SASE converges networking and network security into a single, cloud-native service model to securely connect users, devices, and locations across various edges – from mobile devices to branch offices to public clouds.

The core components of a SASE architecture include:

SD-WAN: Software-defined networking across the WAN to route traffic with automation and intelligence
SWG: Secure web gateway to protect users and control access
ZTNA: Zero trust network access to validate identity and device health before granting access
FWaaS: Cloud-delivered firewall as a service instead of hardware firewalls

As you adopt SaaS apps and move to hybrid workplaces, SASE becomes the secure networking model you need to enable your distributed workforce.

The Evolution to SASE

IT departments traditionally deployed a mosaic of different point security products. For example, remote users are connected via VPN appliances. Data centers housed racks of hardware firewalls. Offices used proxy servers to filter and log web traffic.

As workforces and applications were distributed to more edges, this model proved inefficient:

Separate security stack for locations/users created fragmentation
Backhauling traffic through centralized hubs added latency
Licensing and managing all the disparate tools was complex and costly

The philosophy behind SASE aims to consolidate networking and security into a cloud-native model. Delivering security from globally distributed points of presence removes the need for traffic backhaul while ensuring consistent, robust protection across all edges.

The goal is to shift from securing the network perimeter to securing the identity of users and devices attempting access – in other words, zero trust. Verifying contextual factors before granting access prevents lateral movement across networks in case of compromise.

This inside-out approach wraps security around individual users, applications, and resources instead of the network core.

Convergence is Here

In the future of networking, NaaS can be considered the “what” and SASE the “how.” While NaaS provides the networking infrastructure itself as a service, SASE defines the cloud-centric model for securely connecting distributed users to their applications.

Together, NaaS combined with a SASE architecture powered by critical principles of zero trust and defender advantage is ushering in a new era of networking. It is one where you don’t have to worry about the underlying technology and can instead focus on your core business or mission.

The Power of Converged Solutions

As networking and security converge in the cloud with offerings like NaaS and SASE, several powerful advantages emerge for modern enterprises:

Resiliency – Risk is reduced by distributing functionality across cloud nodes rather than centralized data centers. Workloads can shift seamlessly during disruptions to avoid outages.
Position of leverage: Security embedded in the network fabric provides visibility and control over all traffic, allowing faster detection of attacks and breaches.
Elasticity – Cloud-native solutions flexibly scale up and down to accommodate needs instead of relying on fixed hardware capacity requiring long lead times.
Simplicity – Consolidating tools, data, and dashboards streamlines operations. Less complex environments improve security posture as there’s less to manage.
Unity of direction – Aligning networking and security strategies aids coordination between IT teams. Friction is removed when working towards shared objectives.

As legacy models give way to cloud-first architectures, the convergence of NaaS and SASE promises to offer a more straightforward, more agile way to enable digital business across distributed footprints.

Final Word

It’s an exciting time in enterprise networking. As on-prem data centers get eclipsed by the cloud and mobile becomes the dominant platform for work, how networks are built, managed, and secured requires a paradigm shift.

The convergence of NaaS and SASE presents an opportunity to transform legacy network infrastructure, which is holding back initiatives like cloud adoption, hybrid workplaces, customer experience improvements, and more. The technology exists to make this vision of agile, protected, simplified networking a reality.

Read more:
The Convergence of NaaS and SASE: A New Era of Networking

All eyes have been on Ukraine since Russia launched a full-scale invasion in 2022. While geopolitics and regional security are obvious concerns, it is just as important to highlight how technology is transforming the concept of warfare as we know it.

What advancements have we already witnessed, and how might these very same innovations eventually migrate into the everyday world?

Drone Warfare

There is little doubt that the use of remotely piloted military drones is the most recognised trend. Capable of flying far behind enemy lines while carrying relatively heavy payloads, drones have already begun to replace a sizeable number of boots on the ground. Originally employed by Ukraine, both sides are now capitalising on the various advantages associated with remaining out of harm’s way while still causing a significant amount of damage.

Satellite Communications

Lightning-fast communications can often determine the difference between success and failure on the battlefield. While traditional methods are still used, satellites can now provide real-world data when it is needed the most. The Starlink system pioneered by Elon Musk is a prime example here. Indeed, Ukraine continues to rally for even more assistance; hoping to blunt Russian assaults with the help of these “eyes in the sky”.

Real-World Applications

We have just seen two intriguing ways in which modern technology is transforming modern conflicts. Might these very same approaches benefit society as a whole? The answer is already clear.

While it is impossible to overstate the impact that remotely operated vehicles and tactical drones have on the battlefield, this is only the beginning. These very same pieces of equipment can be used to transport goods, and to increase the level of security associated with business facilities.

The role of satellite communications is even more relevant here, as we already rely on this technology. However, systems such as Starlink could only represent the tip of the proverbial iceberg. Satellites tend to be more reliable than ground-based communications, they are all but immune to the majority of atmospheric conditions that could hinder transmissions, and they are becoming cheaper to deploy on an annual basis. Might there come a day when satellites completely replace existing types of communications such as 5G wireless and fibre optic cables? We will have to wait and see.

Either way, experts are continuing to monitor the conflict in Ukraine. We can only hope that it comes to an end, and that battlefield technological advancements will be used for peaceful purposes.

Read more:
What the War in Ukraine Has Taught Us About Remote Technology

The world of investing is full of potential and opportunities for individuals to capitalize on. But what’s the best way to grow your wealth when it comes to stocks and shares?

DIY investing has accelerated at a rapid pace in the post-pandemic landscape, with 56% growth in the number of customer accounts since 2020. This has helped to create a DIY investment market worth £392 billion as of Q4 2023, representing a growth rate of 14% over the past year.

As of Q4 2023, there were over 10.2 million investing accounts in the United Kingdom. In comparison, 6% of UK adults have stocks and shares ISA in 2024. This indicates that more individuals are opting to go it alone when it comes to investing, or are seeking alternative investment options.

Is this this the right thing to do? Or should investors embrace the convenience of stocks and shares ISAs? Let’s take a deeper look at an approach to investing that brings a unique set of advantages and disadvantages:

What is a Stocks and Shares ISA?

While cash ISAs are a popular way for investors to gain a predictable and steady return on their savings through fixed rates, a stocks and shares ISA takes this concept and invests the savings in carefully selected stocks and shares.

This means that your contributions are invested rather than held in cash. Although some stocks and shares ISAs can allow investors to choose where their money is invested, this process generally involves your savings being managed on your behalf.

Stocks and shares ISAs can be an excellent investment option for you if you don’t have the time to extensively research stock markets to identify opportunities yourself.

Usually, you’re afforded a little bit of freedom to select your level of risk, which will inform your ISA’s manager on the type of stocks you’re willing to add to your portfolio. Higher-risk ISAs will generally involve selecting high-potential stocks that offer more growth potential but far greater associated risk.

Two other forms of ISA, lifetime ISAs and innovative finance ISAs, fail to offer the unique earning potential of stocks and shares ISAs.

With stocks and shares on stock markets like the FTSE 100 or S&P 500 historically growing in value, investors can be reasonably confident that they can grow their wealth with the help of somebody to manage their investments on their behalf. But is it really better than going it alone?

Tax Benefits of Stocks and Shares ISAs

The biggest appeal of stocks and shares ISAs is that investors don’t need to pay capital gains tax, income tax on dividends, or income tax on interest when using the investment strategy.

This means that if your ISA increases in value, you won’t be obligated to pay more tax as a result.

However, there are some things to keep in mind. For instance, you can’t use losses within your ISA to offset any gains you’ve made elsewhere. You can also only pay £20,000 into all your ISAs combined within a tax year.

For high-net-worth individuals, this may make stocks and shares ISAs a little limiting when alternative investment options exist. However, DIY investing is also prone to a number of tax considerations and you could face capital gains and dividend tax.

In the UK, there are currently annual tax-free allowances for capital gains and dividends, which stand at £3,000 and £500 for the 2024/25 financial year.

Higher DIY Returns?

The big question is whether you could make more money as a DIY investor or by selecting a stocks and shares ISA. Frustratingly, the answer to this question is: it depends.

If you’re capable of dedicating plenty of time and research to your DIY portfolio, it’s entirely possible to make more market decisions that align better with your goals and strategy.

However, your stocks and shares ISA will be as strong as the person managing it. For this reason, it’s important to always spend time looking at the long-term performance of the investment firm you’re trusting to manage your ISA on your behalf.

It’s also worth noting that management fees do eat into your stocks and shares ISA holdings, which can make DIY investment more appealing for those willing to go it alone. However, DIY investing also involves transaction fees and administrative fees that can become costly over time.

Growing Flexibility

Although DIY investing gives you the freedom to manually pick and choose your favourite stocks, stocks and shares ISAs are becoming increasingly flexible in recent years.

Round-up apps have helped to create spare change ISAs where investors can build a nest egg by contributing small amounts every day, while modern investment firms are offering far more control over factors like risk appetite and ethical considerations for your stocks and shares ISA.

This aids investors in adopting an investment strategy that aligns with their DIY goals, all without having to dedicate significant amounts of time to researching stocks and shares to add or remove constantly.

ISA or DIY?

So, what’s the best approach to investing in stocks and shares that fits your needs? Again, the answer depends on the level of time and commitment you have to build your own investment strategy to carry out.

For most people, the tax appeal of stocks and shares ISAs, coupled with the convenience of having your investment strategy managed by an industry professional, is a highly appealing and reliable approach to wealth management.

To go DIY can be a highly rewarding experience for many investors, but for those seeking to build their wealth consistently and effectively, the appeal of a stocks and shares ISA can’t be ignored.

Read more:
To ISA or Not to ISA: Should You Let Experts Manage Your Stocks and Shares or Do It Yourself?

Karel Komarek, Czech billionaire whose company Allwyn was licensed to run the UK’s National Lottery, has faced numerous challenges and criticism from both the government and the public.

In addition to technological and financial failures undermining the company’s credibility, investigative journalism has drawn attention to its long-standing ties to Russian businesses, including a mysterious deal for the Samara oil terminal, raising doubts about the transparency of its business.

Technological problems and unfulfilled financial promises

Allwyn has promised not only to upgrade the National Lottery’s technological infrastructure, but also to increase the proceeds for good causes, reaching an annual income of £10bn. However, the first year of management showed that these plans can only remain on paper. A terminal upgrade planned for more than 40,000 UK stores has been delayed by half a year, with prize payout delays, scratch card top-up failures and systemic IT problems sparking criticism from players and consumers.

Russian Samara oil terminal and unclear agreements

The key insight into Komarek’s past relations with Russian businesses was the investigation by Ukrainian journalists from the Kommersant Ukrainskyi about the sale of his Samara oil terminal, located on the Volga, not far from Syzran. According to the journalists, although Komarek’s company officially announced the sale of the terminal as early as 2022, Russian registers indicate the presence of its managers in the company until the end of 2023. A complex scheme was implemented to transfer the terminal to the Czech company Fratron Invest s.r.o., headed by Komarek’s long-time manager Pavel Schwartz. Structures close to the Czech tycoon could theoretically control the terminal through Fratron for at least a year after the announced sale.

Moreover, there is no convincing evidence that Komarek does not control the Russian asset until now. After all, the new owner of the terminal, Andrii Viktorovych Hordieiev, to whom Schwartz sold (or transferred) the rights to the company, is a complete no-name and, probably, is a front person who can represent the interests of both Russians and Komarek.

This, in turn, raises doubts about sincerity of Komarek’s statements about breaking relations with the Russians in general and with Gazprom in particular.

The ‘Gazprom’ past of the owner of the National Lottery of Great Britain

We will remind that for about 20 years Komarek was deeply integrated in business relations with the Kremlin. Together with Gazprom, he built a gas storage facility in the Czech Republic, which is important for Russians’ gas expansion plans and received corporate rights to the terminal mentioned above. The Security Service of Ukraine accused Komarek of the fact that this terminal supplied oil products to Ukrainian territories captured by Russians, thereby sponsoring terrorism.

As for Moravia Gas Storage (MGS), which operated a gas storage facility in the Czech Republic, Russian influence was dominant here. The company’s Board of Directors included ex-Deputy Chairman of Gazprom Oleksandr Miedviediev and other top managers identified by Russian opposition media as former and current employees of Russian special services.

After the Russian invasion of Ukraine, the refusal to cooperate with Russians took much longer than the Komarek company declared. Only in June 2024 did the company complete the buyout of the Russian partner’s stake, seemingly severing the last ties with the Russian business. But the fact of re-election of Ditlif Weidemann, the former head of Gazprom’s subsidiary company in Germany, Gazprom Germania GmbH, to the management of MGS in March 2024 was quite indicative from the point of view of preserving Russians’ influence there. The specified manager represented the Russian, not the Czech, side in MGS.

Dissatisfaction of the UK government and public outcry

The story of the frank prolongation of Komarek’s break with Gazprom and the fact of the powerful lending of Komarek’s projects by Russian state banks for at least 640 million euros caused particular dissatisfaction among British politicians, including Sir Iain Duncan Smith, who pointed to the need for a thorough review of the choice of Allwyn as the operator of the National Lottery. At the same time, some members of Parliament stressed that such a decision risks undermining the trust of the National Lottery as an institution with exclusively charitable goals.

The tender process also sparked debate among British politicians due to revelation of Komarek’s ties to the Kremlin, which could have influenced the decision. Camelot, which had previously held the license since 1994, initially took legal action but later withdrew it when Allwyn bought the company for £120m.

Difficulties with providing financial forecasts

After Allwyn took over, its financial performance fell short of stated projections. Delays in the launch of new games and the lack of updates in pricing policies (for example, the price of a lottery ticket was not reduced from £2 to £1) compounded the financial difficulties. The British Gambling Commission, which approved the license, explains that such changes are normal in market conditions, but politicians and experts doubt the realism of Allwyn’s promises to increase funding for good causes.

Allwyn lobbying and influence in the UK

Faced with a wave of criticism, Allwyn focused on strengthening its image by sponsoring major events. For example, the company supported The Spectator’s annual event and several events at the Labor Party convention to discuss the future of creative industries. Such efforts to strengthen ties with the British public are aimed at restoring trust in the company and overcoming a negative image due to links with Russian business.

However, despite Allwyn’s best lobbying efforts, key questions about the company’s transparency and compliance with UK sanctions policy are still open. The impact of the factor of secret ties with Gazprom and the Samara oil terminal, which could continue to bring income to companies linked to Russian business, is causing a stir among the British public. Karel Komarek’s connections with Russian partners remain the subject of discussions in the media, because the details of the terminal sale are still incomplete and raise doubts about the sincerity of statements about a complete break with Russia.

The case, amid all the difficulties Allwyn is facing in the UK market, has drawn attention to the difficult question of whether a company with a murky past and delays in financial forecasts can ensure transparent management of one of the UK’s most important charities. What remains in question is not only the competence of Allwyn, but also credibility of the National Lottery as a reliable source of funding for good causes, which is central to the social welfare of the country.

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Czech tycoon Karel Komarek and the UK National Lottery: the shadow of Gazprom and the Russian Samara oil terminal