Rishi Sunak has been targeted by political rivals over his wife’s stake in an Indian multinational operating in Russia.
Labor said the Chancellor had “very serious questions to answer” about Akshata Murty’s stake in Infosys, a company her father co-founded.
Mr Sunak said he had “nothing to do” with the company.
He has encouraged British firms to cut ties with Russia to punish Vladimir Putin for invading Ukraine.
Downing Street told reporters on Friday that Ms Murty’s involvement in Infosys was a “personal issue for the Chancellor”.
The software giant Infosys is one of the largest companies in India and is represented in about 50 countries worldwide.
- Sunak denies connection to a company operating in Russia
- More and more companies are withdrawing from Russia
- Western brands cannot leave Russia
It was co-founded by Ms Murty’s billionaire father, Narayana, who retired in 2014 but retains a small stake along with other members of his family.
Ms Murty’s 0.9% stake in Infosys is said to be worth more than £400m.
A spokesman for Mr Sunak said neither she nor any members of her family are “involved in the company’s operational decisions”.
In 2016, Infosys set up an engineering center in Moscow to support its customer Ansaldo Energia, which developed gas turbines for sale to Russian power plants, and other customers.
After Russia launched its invasion of Ukraine, many global IT giants, including Oracle and SAP, ceased operations in the Russian Federation and expressed their solidarity with the Ukrainian people.
Infosys is among those that continue to operate there, and says it has a “small team of employees based in Russia who serve some of our global clients locally.”
“We have no active business relationships with local Russian companies,” it added in a statement.
“Infosys supports and advocates peace between Russia and Ukraine,” the company said, and had committed $1 billion to “relief efforts for Ukraine’s war victims.”
The UK restricted its trade with Russia through sanctions following its invasion last month – a move not repeated by India.
Mr Sunak said he would support British firms that voluntarily cut ties with Russia to inflict “economic pain” on President Vladimir Putin.
He has also urged British investors to “think very carefully” about whether investments could support Mr Putin, believing that there is “no argument for new investments in the Russian economy”.
Asked about Infosys’ presence in Russia on Thursday, Mr Sunak told Sky News he had “nothing to do” with the company.
But on Friday, Labour’s shadow transport secretary Louise Haigh said Mr Sunak had “very serious questions to answer on this matter”.
“It’s really quite shocking that these allegations have surfaced now that Rishi Sunak’s family is itself profiting from doing business in Russia,” she told BBC News.
“Chancellor has specifically called for secession from Russia to cause economic pain and ensure sanctions are perceived as deeply as possible,” she added.
Asked whether Mr Sunak should ask his wife to sell her shares, Ms Haigh replied: “Given that he is being asked to cease trading in Russia, he should of course ensure that his own family follows that advice too .”
Liberal Democrat Treasury Department spokeswoman Christine Jardine said Mr Sunak “must come clean and explain any potential conflicts of interest”.
“Openness and full transparency are crucial given the risks posed by financial ties with Russia,” she added.
“The public deserves full transparency on this issue. It cannot be one rule for the chancellor and another for everyone else.”
Infosys has had ties in the past to Alfa Bank, one of Russia’s largest financial institutions, which was added to the UK sanctions list on Thursday after already being sanctioned by the US and EU.
In 2004, Mr. Putin visited Infosys’ headquarters in Bangalore, where he was led by Narayana Murthy.
Mr. Sunak met his future spouse while he was studying economics at Stanford University in California. They married in 2009 and have two children.
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