Miliband warns on Russia tax move

Two British Council offices reopened despite an order to stay shut

Threats by the Russian Government to take further action against the British Council "can only make matters worse", Foreign Secretary David Miliband says.

The British Council reopened offices in St Petersburg and Yekaterinburg, despite a Moscow order to close them.

Russian authorities now say they intend to take tax measures against the council and restrict visas for staff.

The offices were ordered to shut in a continuing dispute over ex-KGB agent Alexander Litvinenko's death in London.

The offices that reopened after the holiday break are in St Petersburg and the Urals city of Yekaterinburg. The ban does not apply to the British Council's Moscow office.

Russia has further stated that it may take further action against the British Council in Moscow David Milliband

However, Russian authorities informed the British Ambassador in Moscow on 14 January that they intended "to take a series of administrative measures against the British Council", Mr Miliband said.

These include tax measures against staff in St Petersburg and visa restrictions against those based there and in Yekaterinburg.

"Russia has further stated that it may take further action against the British Council in Moscow, including visa restrictions against UK Diplomatic staff," said Mr Miliband.

"Such threats can only make matters worse.

"It is not in the interests of either the UK or Russia for flourishing cultural, educational and scientific links to be held hostage to unrelated issues in this way."

Response expected

The UK Government has "repeatedly made clear to the Russian authorities" that the British Council's activities in St Petersburg, Yekaterinburg and across Russia are "fully compliant" with Russian and international law, under the Vienna Conventions.

Its presence and activities are also specifically sanctioned by a 1994 UK/Russia Agreement on Co-operation in Education, Science and Culture, signed by Russia, Mr Miliband said.

"The government will consider these latest actions by Russia carefully and will continue to engage with our international partners on them," he said.

"We will respond to the Russian Government shortly."

The British Council, which aims to promote cultural and educational ties, has been accused of violating Russian tax rules.

Extradition

The row came on top of ongoing tensions over the death of former KGB officer Litvinenko in London in November 2006. He had been given a fatal dose of radioactive polonium 210.

The UK wants Russia to hand over businessman Andrei Lugovoi, whom UK investigators suspect of murdering Mr Litvinenko.

When Russia refused to extradite Mr Lugovoi, Britain expelled four Russian diplomats and Moscow followed suit.

Russian officials have described the action against the British Council as a retaliatory measure.