Eden Council pursues Gazprom contract to avoid £157,000 cost hike

EDEN Council is expected to continue its contract with the British branch of energy giant Gazprom.

Eden District Council heard calls to cut ties with Russian gas giant Gazprom in April amid the invasion of Ukraine.

The council has a contract with Gazprom to heat its municipal buildings.

It was decided to investigate the ownership of Gazprom UK and the possibility of terminating the contract early.

But the board’s oversight committee has learned that, following investigations, the board will continue its contract with the UK arm of the company because of its associations with the German government, not Russia.

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Through him, Eden Council learned that “the changes that Gazprom Germania, the parent company of GM&T (UK) had made to distance itself from Russian control and financing”.

The changes at Gazprom mean the board “does not support” a Russian state-backed company.

The German government took control of Gazprom Germania and its commercial arm Gazprom Marketing and Trading, which owns GM and T.

It also emerged that terminating their contract with Gazprom early could mean a raise of 563%, or £157,000 a year.

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The report laid before councilors at the review read: ‘In view of the change in ownership and the huge increase in costs which would arise from breach of the existing contract, the decision has been taken not to seek to break the existing contract.

“The situation should however be monitored and the Council will take appropriate action if circumstances change.”

Their arrangement is expected to remain under review as Germany’s involvement in the venture is temporary for the time being.

The report reads: “Gazprom Germania GmbH will be renamed and operate as “SEFE Securing Energy for Europe GmbH” (SEFE).

“Gazprom Germania subsidiaries that currently use Gazprom brands will also be renamed in the near future.

“The steps taken have been taken to fully reassure customers and stakeholders in terms of the financial security and future reliability of the businesses and that all ownership, control or cash flow with Russia has ended.”

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