Home MOREBUSINESS & ECONOMY UK local authorities seek to cut ties with the Russian energy firm Gazprom over Ukraine invasion

UK local authorities seek to cut ties with the Russian energy firm Gazprom over Ukraine invasion

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Russian Oil and Gas Revenues

Councils across England are seeking to cut ties with the Russian energy firm Gazprom in protest at the invasion of Ukraine, the BBC reports.

Several, who use the part-state-owned firm’s gas to heat buildings including offices, schools and social housing, have told the BBC they want to end their contracts as soon as possible.

UK local authorities, which have a statutory duty to find the cheapest deal on behalf of the public, paid £29m to Gazprom from 2016 to 2021, according to data firm Tussell.

But many are “deeply saddened” by events in Ukraine since the invasion began last week, the Local Government Association, which represents councils, said.

Tussell also says the total UK public sector spend with Gazprom between 2016 and 2021 was £107m, with NHS expenditure accounting for £77m or 72%.

Elsewhere, the BBC has been told that the Health Secretary Sajid Javid has urged NHS trusts to stop using energy supplied by Gazprom.

A senior government source said Mr Javid had also requested “a wider review of any Russian role in supply chains across the health service”.

The Anglo-Dutch oil company Shell cut all ties with Gazprom earlier this week.

But it is not on the UK government’s list of sanctioned Russian firms, meaning it might be difficult for councils to end contracts early.

A Local Government Association spokesperson said councils were “deeply saddened by the tragic events unfolding in Ukraine and are following the situation closely”.

“It is up to individual councils to decide how to act locally but, like many organisations, they will be reviewing what action they might want to take in light of UK sanctions and the ongoing situation,” they added.

Russian companies supply around 5% of the UK’s gas, compared with almost 50% for EU countries.

A government spokesperson said: “We will work closely with councils and other public bodies to ensure they are able to comply with the financial and investment restrictions on Russia and will engage with them on what support they need to do this.

“The UK is in no way dependent on Russian gas supply and our highly diverse sources of gas supply and a diverse electricity mix ensures that households, businesses, and heavy industry get the energy they need.”



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