Gazprom: North Tees NHS Trust deems early exit from deal 'too expensive'

The trust said the cost of leaving the contract was too much

A health trust has concluded it cannot extricate itself from a seven-figure deal with a Russian energy giant before it expires next year. 

North Tees and Hartlepool NHS Trust has spent £3.6m on contracts with state-controlled gas and oil company Gazprom.

Trust officials said it would cost too much to end the contract early but confirmed it would not renew it.

Councils across England are seeking to cut ties with Gazprom in protest at Russia's invasion of Ukraine.

Health Secretary Sajid Javid has called on public sector bodies to stop buying Russian oil and gas as "ultimately that money goes to support Putin's war machine". 

Since the start of March, a number of local authorities have announced they will either end their contracts early or are actively seeking new suppliers.

It is not known what it would cost North Tees and Hartlepool NHS Trust if it were to pull out of its deal.

The UK public sector spent £107m with Gazprom between 2016 and 2021

Gazprom's chief executive, Alexey Miller, was included on a new list of seven individuals to be sanctioned by the UK government on Thursday.

The Russian company has been one of the biggest gas suppliers to UK businesses since 2010, the Local Democracy Reporting Service said.

The value of its contracts with local councils and health trusts was revealed by data firm Tussell last week.

It said the UK public sector had spent £107m with Gazprom between 2016 and 2021.

Analysis showed that the lion's share of that sum - £77m - came from the NHS and £29m from local authorities.

Tussell said the top five buyers were all NHS bodies, with Newcastle NHS trust spending the most at £15m but Suffolk and Manchester most reliant on the energy giant.

The Newcastle trust said it had changed gas suppliers in April last year.

Tussell's analysis also showed Tees, Esk and Wear Valleys NHS Trust had a £103,302 contract with Gazprom but the trust has since confirmed it was moving to a new supplier next month.