Portsmouth City Council to axe contract with Russian gas giant

Many English councils have already said they intend to end their deals with the Russian energy giant

A £5.5m contract with a Russian gas company is to be axed by a council in response to the war in Ukraine.

Portsmouth City Council plans to use the break clause to end a deal with Gazprom in September, two years before the agreement was due to expire.

Councillors voted in favour of the move, which will cost the authority £57,000 in penalty fees.

Leader Gerald Vernon-Jackson said: "We want to get out as the earliest possible opportunity."

Gazprom is considered the largest extractor of natural gas in the world and has headquarters in Moscow.

As previously reported, the BBC understands the company could go into administration after a number of local authorities announced intentions to end deals with the firm.

Gazprom currently supplies gas to all council-owned buildings across Portsmouth, as reported by the Local Democracy Reporting Service.

Council leader Gerald Vernon-Jackson said the authority "did not wish to be associated" with Gazprom

Mr Vernon-Jackson told councillors he had approached the government and Ofgem to take action against the firm, allowing the contract to be ended.

He added: "Along with many other organisations, we find ourselves with a contract with Gazprom who we don't wish to be associated with.

"We hope there is action on this quickly from government but if not we want to get out at the earliest possible opportunity."

A spokeswoman for Ofgem said it did not comment on specific suppliers' finances or position.

A government spokesperson previously told the BBC the UK "was in no way" dependent on Russian gas.

They added: "We are aware that Gazprom Energy has a large presence in the non-domestic energy retail market.

"Gazprom's retail business continues to trade in the UK and customers should exercise their own commercial judgement with regards to energy supply contracts they have in place at the moment."

Gazprom has been approached for comment.