Two local authorities in the UK have moved to terminate energy contracts with a Russian supplier in protest at the war in Ukraine.
Suffolk County Council (SCC) is terminating a £10m contract with Gazprom, while Wealden District Council (WDC) is looking to cancel its contract with Gazprom.
SCC’s contract with the energy supplier was negotiated in 2019 and commenced in 2020. It was due to end in 2023, with numerous organisations including schools and public offices in Suffolk getting their gas through the company.
SCC leader Matthew Hicks said: “When Vladimir Putin made the immoral and utterly reprehensible decision to invade Ukraine, I instructed officers last week to review our contract with Russian-owned energy company Gazprom.
“I can confirm that we have decided to invoke our options to break away from the contract, ending our connection with Gazprom. Working with our partners, we are actively pursuing this outcome.
“The government is imposing economic sanctions on Russia and this is a part we can play in helping to bring to an end this act of aggression on a free and peaceful nation and its innocent people.”
Meanwhile WDC in East Sussex – which uses Gazprom to supply gas to social housing in the area – said it was looking at its “options and obligations” to the company, and said it was further investigating whether anymore of its contracts were linked to Russian firms.
Speaking to Sussex World, Trevor Scott chief executive at WDC said, “WDC’s legal and procurement teams are currently looking into the issue and we are seeking advice and support from the Local Government Association.
“It is public record that WDC has three contracts with Gazprom running until 2024 relating to retirement living complexes across the Wealden district.
“At the time of procurement, Gazprom put forward the best case to supply services in accordance with the legal obligation on local authorities to obtain best value.”
Bob Standley, leader of the council, continued: “The council utterly condemns the Russian invasion of the independent sovereign country of Ukraine and gives our support to Ukrainian citizens.
“We are seeking advice from the Local Government Association and government on how we can cancel the contract with Gazprom and seek alternative gas supplies to our sheltered homes.
“We are also examining whether any other contracts are with Russian-controlled companies and will take similar action to terminate those arrangements.
Meanwhile WDC in East Sussex – which uses Gazprom to supply gas to social housing in the area – said it was looking at its “options and obligations” to the company, and said it was further investigating whether any further contracts were linked to Russian firms.
Speaking to Sussex World, Bob Standley, leader of the council, said: “The council utterly condemns the Russian invasion of the independent sovereign country of Ukraine and gives our support to Ukrainian citizens.
“We are seeking advice from the Local Government Association and government on how we can cancel the contract with Gazprom and seek alternative gas supplies to our sheltered homes.
“We are also examining whether any other contracts are with Russian-controlled companies and will take similar action to terminate those arrangements.”
Gazprom was formed from the Soviet Union’s Ministry of the Gas Industry in 1989. It produces 13% of all global gas and is the largest extractor of natural gas in the world.
A spokesperson for the Local Government Association (LGA) told Supply Management: “Councils are 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.”
The LGA further said: “We, local and regional leaders across Europe, strongly condemn the multiple attacks and violations of the territorial integrity and sovereignty of Ukraine. We express our full support and solidarity to the Ukrainian people and our peers in local and regional government.”
The announcement comes as part of global reviews of Russia-linked public procurement, with American state governors ordering investigations of state procurement contracts for Russian ties.
Uefa, the governing body of football in Europe, also announced it is terminating its relationship with the Russian energy company.
It said: “Uefa has today decided to end its partnership with Gazprom across all competitions.
“The decision is effective immediately and covers all existing agreements including the Uefa Champions League, Uefa national team competitions and Uefa Euro 2024.”
