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Now Labour minister Tulip Siddiq faces questions over $1bn Russian arms deal her aunt penned on household go to to the Kremlin

Labour minister Tulip Siddiq was facing fresh questions last night after it emerged her aunt penned a $1billion Russian arms deal on their family visit to the Kremlin.

The Treasury minister, who is responsible for stamping out economic crime in Britain’s financial sector, was this week named in an anti-corruption probe in Bangladesh.

She is alleged to have been involved in brokering a 2013 deal with Russian dictator Vladimir Putin for a nuclear power plant in Bangladesh, from which up to £4billion is said to have been embezzled.

Ms Siddiq’s aunt, Sheikh Hasina – who was until recently prime minister of Bangladesh for more than 20 years – is also being investigated, along with her mother, Sheikh Rehana Siddiq, court papers revealed. 

Footage from 2013 shows Ms Siddiq watching on as Hasina and the Russian president signed the deal at the Kremlin. She is also pictured posing next to her aunt and Putin.

But as well as signing the agreement for the nuclear power plant, Ms Siddiq’s aunt also penned a deal for a $1billion (£800million) loan to Bangladesh to buy Russian weapons and military equipment.

In a statement following talks between Hasina and Putin, the Russian president said: ‘Our countries intend to expand defence cooperation. Russia (and you have seen the signing of this agreement) will extend a $1billion loan to Bangladesh to buy Russian weapons and military equipment.’

At the time, Ms Siddiq was a Labour councillor, before becoming an MP in 2015. Labour sources have claimed Ms Siddiq only went to Russia to spend time with her family and had no role at any events she attended, aside from being a family member.

Treasury minister Tulip Siddiq is facing fresh questions over her involvement in a $1bn Russian arms deal penned by her aunt on a family visit to the Kremlin

Treasury minister Tulip Siddiq is facing fresh questions over her involvement in a $1bn Russian arms deal penned by her aunt on a family visit to the Kremlin

She is alleged to have been involved in brokering a 2013 deal with Russian dictator Vladimir Putin for a nuclear power plant in Bangladesh

She is alleged to have been involved in brokering a 2013 deal with Russian dictator Vladimir Putin for a nuclear power plant in Bangladesh

A party spokesman told the Mail last night: ‘The dealings of two countries from two years before Tulip became an MP have absolutely nothing to do with her.’

Labour has also said she ‘totally refutes’ the claims relating to the anti-corruption investigation.

But the Conservatives urged Ms Siddiq, who has so far not publicly commented on any of the allegations, to come clean.

Shadow home office minister Matt Vickers said last night: ‘The questions Tulip Siddiq and Keir Starmer need to answer are growing. Starmer must also set out why he has chosen to stand by another beleaguered minister.

‘The latest revelation that Tulip Siddiq, Labour’s own anti-corruption minister, was also there when an arms deal with Russian dictator Vladimir Putin was struck, is deeply concerning.

Ms Siddiq¿s aunt, Sheikh Hasina ¿ who was until recently prime minister of Bangladesh for more than 20 years ¿ is also being investigated

Ms Siddiq’s aunt, Sheikh Hasina – who was until recently prime minister of Bangladesh for more than 20 years – is also being investigated

‘Labour cannot hide from the truth forever, and in light of this latest development there must now be a full and urgent investigation.’

A Conservative MP has written to Daniel Greenberg, the Parliamentary Commissioner for Standards, calling for him to look into the allegations.

The Treasury confirmed that Ms Siddiq recused herself of any decisions relating to Bangladesh when she entered office. A spokesman said: ‘The Economic Secretary is not involved in policy-making that has a direct link to Bangladesh.

‘The minister has not been involved with any decisions relating to Bangladesh since entering government and will not be in future as she recuses herself to avoid any perceived conflicts of interest. Her interests are publicly disclosed as part of the List of Ministers’ Interests.’