The Cabinet of Ministers has told taxpayer-funded organizations to urgently reconsider their links with such companies after the invasion of Ukraine. Local authorities, some of which have λι million worth of deals with Gazprom’s supply arm in the UK, are facing potential termination fees due to termination of contracts. Use the Chrome browser for a more accessible video player 0:59 The councils are calculating the cost as they face pressure to terminate Russian contracts If they do get out of the contracts, the limited cash boards will need to enter into new deals that could be up to six times more expensive in a time of rising energy prices, he told Sky News. Read more: How the war in Ukraine erodes living standards in Britain They also face a potential hurdle due to laws prohibiting them from allowing non-commercial matters to influence contract decisions and forcing them to seek the best possible value. In a consultation published last week by the Portsmouth council, she said the termination of her contract with Gazprom could cost more than 100 100,000 in complaints and broker fees. But an even bigger headache could arise from the council’s liability for a αξ just under 1 1m contract for gas supplies this winter if Gazprom cannot find an alternative buyer. The new government directive, issued Monday, deals with public bodies, including Whitehall hospitals and departments, and their contracts with Russian and Belarusian companies. Public sector bodies are invited to examine the small print of the agreements to see if they can detach from them. Use the Chrome browser for a more accessible video player 2:37 The British believe that sanctions are not enough Cabinet Secretary Steve Barclay said: “Public money should not fund Putin’s war machine. “We urge hospitals, councils and other public sector organizations to urgently consider any further steps they can take to sever their trade ties with Russia. “The government will continue to work closely with these organizations, ensuring that they are able to take the necessary action as soon as possible, including taking legal action where necessary.” Sky News understands that the government is not telling public bodies to “get out of these contracts and deal with the consequences”, but is asking them to try to find out if there is flexibility to get out of them. The Local Government Association said: “As councils investigate the expiration of contracts with key contractors, such as Gazprom, they face the risk of costly termination fees. “Boards must also consider the impact of paying significantly higher energy costs under new contracts – given market volatility and recent price increases – on their limited resources and budgets and their legal duties to provide value for money. of taxpayers. “ Use the Chrome browser for a more accessible video player 1:54 “I’m afraid to turn on the heating” The government said in a statement Monday that less than 4% of the UK’s gas supply comes from Russia. However, the latest industry data from Cornwall Insight earlier this year showed that Gazprom has a 20.8% share of the non-domestic market – including businesses and boards. Earlier this month, it emerged that Health Minister Sajid Javid had said the NHS should stop using the energy supplied by the company, with contracts reportedly worth 16 16m in 2021. Total public sector spending in the UK with Gazprom between 2016 and 2021 was 10 107 million, according to data provider Tussell. His analysis showed that 77 77 million came from the NHS and 29 29 million from councils. Sky New contacted Gazprom Energy for comments.
