Council thinks about staying with Gazprom contract

Council thinks about staying with Gazprom contract: Portsmouth City Council is set to make a U-turn on its agreement to end its gas contract with Gazprom before its late date.

Local authority leaders will be asked to relinquish their decision to axe the contract because the UK arm of the company does not have ties with the Russian Government anymore.

A document written by Andrew Waggott, Head of Energy Services, says: “No money from the contract is flowing back to the Russian state.

“The change of shareholder of Gazprom M&T & the control of Gazprom Germania by the German Federal Agency breaks the link between the contract and Russia.

“Gazprom M&T has no direct contracts in place for Russian gas.”

The report further suggests stopping the contract with Gazprom M&T will have an unavoidable increase in cost to the council.

The council’s cabinet is anticipated to make a decision tomorrow.

“It was absolutely right that we sent the really clear message to the Russian Government that we would not send them any money as a result of their invasion of Ukraine.

“But with the German Government stepping in & the breakage of the link between Gazprom with the Russian state, that is no longer an issue and the imperative that existed to end the contract no longer exists.

“Ending the contract will have an inevitable cost increase to the council, so we are also able to save a substantial sum of money if we do not terminate.” Says Leader of Portsmouth City Council, Councillor Gerald Vernon-Jackson.

Council thinks about staying with Gazprom contract