Boris Johnson has been accused of “prostituting himself” to get cash from wealthy Russian-linked donors.
The charge was levelled at the Prime Minister after a row about the sources of huge cash sums handed to the Conservative Party and government ministers.
Lord Rooker’s it follows the delayed release of the Intelligence and Security Committee’s (ISC) Russia report - which warned Russian oligarchs - and their money had been “welcomed with open arms.”
It warned they had been allowed to forge "connections at the highest levels with access to UK companies and political figures".
The watchdog said such links had been "counter-productive" and led to "illicit finance" flowing through London - dubbed a money "laundromat" and "Londongrad".
Mr Johnson has defended the system for accepting donations and also criticised the assumption that "everybody who is associated with some country or other is in some way untouchable - we are not a racist country".
Labour former Minister Lord Rooker raised the issue in the House of Lords as he grilled the government on the balance of trade between the UK and Russia.
He was told the total business between the two countries amounted to £15.8 billion in the year to March - with UK exports of £5.9 billion and Russian imports of £9.9 billion.
Lord Rooker shot back: "Will those figures be improved by the Prime Minister prostituting himself and his office in the interests of getting Russian money through the London laundromat into Tory party funds?"
International trade minister Lord Grimstone of Boscobel, a former chairman of Barclays Bank, said: "Can I make it quite clear that money obtained through criminality of corruption is not welcome in the UK.
"We have long recognised the corrosive risk of dirty money, including from Russia, being laundered in the UK and continue to bring the full capabilities of law enforcement to bear against serious criminals, corrupt elites and their assets."
Labour peer Lord Foulkes of Cumnock said trade talks with Moscow were being "compromised" because of the millions of pounds in donations made to the Tory party and ministers, from Russian sources.
Lord Grimstone pointed out there were currently no trade negotiations with Russia and added: "I resent the assumption that ministers would in any way be influenced by the matters to which he refers."
