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More landlords ‘taking steps’ to cut ties with Russian energy giant Gazprom
At least nine councils and housing associations are “taking steps” to cut ties with Russian energy giant Gazprom in response to the country’s invasion of Ukraine.
Inside Housing found a number of landlords that have entered into contractual agreements with the Russia-based energy supplier or have procured the supplier via a framework.
Four associations and one council have confirmed they were “reviewing” their contractual arrangements or “ending” their supplies from Gazprom.
This is in addition to one housing associations and three councils that yesterday said they were looking to end their deals.
According to the government’s Contracts Finder website, Catalyst entered into a nearly £500,000 contract in October last year for the supply of gas that was due to end on 30 September 2022, but the G15 landlord said it was “looking into options around ending or reducing our supplies from Gazprom”.
EMH, which providers 18,000 homes across the East Midlands, said it would review a £60m framework on which it is named as the lead authority that is due to end on 20 October 2024.
Geoff Clarke, executive director of finance at EMH, said: “The framework in question was procured by Cost Advice Services Limited for use by EMH and their other public sector customers.
“EMH is named as the lead authority on this framework, as we were the first of their public sector clients requiring new contracts to be procured in this way. EMH has no contractual relationship with Gazprom. However, we will be reviewing our arrangements with Cost Advice Services within the next few weeks.”
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Lancashire-based Progress was also named on a £100m energy framework agreement that is due to end on 31 March 2024.
Bernie Keenan, the association’s deputy chief executive, said: “We have no contracts with Gazprom and have taken steps to exclude them from any future tenders.”
Grand Union confirmed that it was the contracting authority in a £300m electricity and gas procurement framework provided by Trident Utilities that would come to an end on 16 December 2024.
A spokesperson said: “We have already taken immediate steps to remove Gazprom from the framework, and it is our intention to terminate our contract with Gazprom as soon as possible. While this may have some financial implications for us, we believe that doing the right thing and supporting democracy is worth it.”
According to the contracts database, Optivo entered into a £2m contract with Gazprom in October to supply electricity and natural gas that was due to end on 30 September 2022.
But the 45-000 home landlord said it had not been in contract with Gazprom since 2020.
Stroud District Council has a three-year contract with Gazprom worth £357,499. Doina Cornell, the council’s leader, said: “On behalf of Stroud District Council, I want to express how saddened we are by the news of the situation in Ukraine. Our thoughts are with the people of Ukraine, the local Ukrainian community, and those who have been affected.”
Yesterday, Mark Henderson, the chief executive of Home Group, tweeted that the housing association was cancelling its energy contract with Gazprom and was preparing to house Ukrainian refugees.
He told Inside Housing the association was “still looking for a route out” of the contract.
Kent, Wealden and Suffolk Councils have also announced plans to end deals with Gazprom.
Inside Housing has contacted One Vision, Magna and Origin, as the government’s Contracts Finder website suggests they may be receiving gas from Gazprom or be involved in a framework using the supplier.
Fighting in Ukraine has now entered its ninth day, with hundreds of civilians killed as a result of the Russian advance. Russia’s actions have been met with widespread condemnation from the West. Countries have imposed huge sanctions on the country and frozen the assets of individuals with links to the Putin regime.
Last week, Sadiq Khan, the mayor of London, called on the government to implement new laws which would allow the seizure of houses and other properties from the Russian president’s allies.
