British Gas owner Centrica to exit Russia gas supply contracts

Centrica has launched talks to quit its Russian gas supply deals due to crisis in Ukraine

A lit gas hob sits next to a bill from British Gas, which announced it will exit gas supply agreements with its Russian counterparts. PA
Powered by automated translation

Live updates: follow the latest news on Russia-Ukraine

British Gas owner Centrica has said it will exit gas supply agreements with its Russian counterparts, including Gazprom, due to the Ukraine crisis.

It comes after a number of UK energy companies, including BP and Shell, moved to sever ties with Russia due to the ongoing conflict.

London-listed Centrica said it currently has a medium-term contract with Gazprom Marketing and Trading, the Russian energy company's UK entity, through which gas can be sourced from the open market.

The firm highlighted that this supply contract is not affected by recent sanctions imposed by the UK government but has still launched talks to quit the deal.

“We are shocked by the events unfolding in Ukraine and the needless loss of lives,” said Chris O’Shea, chief executive at Centrica.

“We intend to exit our gas supply agreements with Russian counterparts, principally Gazprom, as a matter of urgency.

“We are working through the details of how best to do this. Additionally we will ensure we are compliant with all relevant sanctions.”

On Monday evening, Shell announced plans to sell its stake in all joint ventures with Gazprom, calling Russia’s invasion of Ukraine “senseless” and a threat to European security.

It came after BP said it would divest its $25 billion stake in Rosneft, in which it owned a 20 per cent shareholding and held two board seats.

Updated: March 02, 2022, 7:59 AM