Eden District Council to continue Gazprom contract

Penrith Town Hall has been lit in the colours of the Ukrainian flag as a mark of solidarity

A council is to continue its contract with the Russian energy giant Gazprom, despite recent criticism in light of the war in Ukraine.

Eden District Council was urged to sever ties with the part-state-owned gas and oil company, which heats municipal buildings in Penrith.

But the authority said its deal was with the UK arm of the company, which is German controlled.

It was also significantly cheaper than any available alternative, it said.

Gazprom had refused to end the contract early, meaning the council would be in breach of the contract if it chose to do so, the Local Democracy Reporting Service said.

However, councils across England have sought to cut ties with the company in protest at Russia's invasion.

A number of local authorities have announced they will either end their contracts early or are seeking new suppliers.

'Huge cost increase'

An Eden council spokesperson said it pays Gazprom 2.13p per Kwh for gas and the best alternative on the market was 12p per Kwh, a 563% increase.

"The change in ownership means that the council's contract is with the German government and not with Russia," the spokesperson said.

"Given this change in ownership, the huge increase in costs and the need to break the law to exit, the council has taken the decision to continue with the existing contract."

The council reiterated its previous assertion that it "utterly condemns the Russian invasion of Ukraine and gives our support to Ukrainian citizens".

Last month, government was reported to have considered stepping in to temporarily run Gazprom's UK arm, Gazprom Marketing & Trading Retail Ltd, which supplies thousands of organisations across the UK.