Peter Mandelson's links to China, Russia and Israel flagged by vetting agency
The security vetting agency highlighted Peter Mandelson's links to senior figures and recommended he should not be appointed US ambassador
Peter Mandelson failed his security vetting to become US ambassador because of his ties to senior figures in China, Russia and Israel, it has been revealed.
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Lord Mandelson's links to China’s minister of finance, Lan Fo’an, the sanctioned Russian oligarch Oleg Deripaska and an Israeli former military intelligence general, Tamir Hayman, were among the concerns flagged by UK Security Vetting (UKSV) when it recommended he should be denied security clearance, a source told the Guardian.
The nine-page vetting summary also warned Lord Mandelson's links to a fourth British individual could be compromising, a source told the newspaper.
Another source of concern highlighted by the vetting agency was a £1m loan Lord Mandelson received to invest in an Israeli startup.
The concerns contributed to the vetting agency's conclusion that Mandelson presented a “high” overall concern and that his clearance should be denied.
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But Mandelson was nonetheless granted security clearance by Sir Olly Robbins, the permanent secretary at the Foreign Office.
The latest revelations will ramp up pressure on Prime Minister Keir Starmer, who has faced scrutiny over his handling of the peer's appointment , amid the possibility of a looming leadership challenge from Andy Burnham coming into view if the Mayor of Greater Manchester wins the Makerfield by-election in June.
They also come after former minister Jess Phillips revealed she threatened to resign from the government multiple times over Mandelson's appointment as US ambassador.
The former safeguarding minister described feeling "hurt and upset" over Lord Mandelson's initial appointment.
Lord Mandelson was eventually sacked from the role in September 2025 over his friendship with paedophile financier Jeffrey Epstein.
Ed Davey, leader of the Liberal Democrats, said “glaring warning signs were wilfully ignored" in relation to Lord Mandelson's appointment.
The Conservative shadow foreign secretary Priti Patel said the decision to appoint Lord Mandelson as ambassador was "reckless" and added: "A man with these links to Russia and China should never have been handed one of our most sensitive diplomatic posts.”
The revelations will build pressure on the government to release all the papers relating to Mandelson’s appointment. The Intelligence and Security Committee (ISC) is due to finalise next week what materials it believes can be published without harming national security.
In a surprising intervention earlier this month, the ISC accused the government of withholding some vetting documents and applying redactions “far too broadly”.
The committee said it did not think the motion passed by the Commons demanding documents related to the appointment, known as a humble address, allowed redactions “other than on grounds of prejudice to UK national security and international relations”.
The ISC also suggested redactions on non-security grounds were “being applied far too broadly”, and accused the Government of withholding documents despite not having “the authority to do so”.
In February, MPs demanded the release of a huge tranche of documents connected with Lord Mandelson’s appointment, including private messages between the peer and senior ministers and their advisers.The ISC was tasked with reviewing the Government’s redactions to some of those documents on national security grounds, but has said ministers should seek permission from Parliament to exclude information on any other grounds.
The committee also raised concerns about the extensive use of WhatsApp to conduct Government business, as well as the lack of an audit trail for decisions and the use of less secure IT systems, which it described as “appalling”.
Responding to the ISC’s statement, shadow Cabinet Office minister Alex Burghart accused the Government of carrying out a “cover-up”.
He said: “It is outrageous that Labour are trying to withhold documents about the Mandelson-Epstein affair from Parliament.
“Throughout this process Starmer and his ministers have sought to pull the wool over the public and Parliament’s eyes.
“They only started releasing information because the Conservatives forced them to, and even now they are continuing the cover-up.”
It is understood that the UKSV summary document has been shared with the ISC and redactions have been mutually agreed so that it can be published.
All documents that have gone through the ISC process will be published in the second tranche, except if the Metropolitan Police has requested that they be held back, it is believed.
A spokesperson for the Cabinet Office said: "We are committed to complying with the Humble Address in full."
Lord Mandelson has been contacted for comment.