Government ‘considers takeover of Gazprom’s UK gas supply arm’
Subsidiary under pressure as UK firms and public authorities shun companies linked to Kremlin
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Your support makes all the difference.The government could temporarily take control of Gazprom's UK gas supply arm if it collapses as customers ditch the firm over its links to the Kremlin.
Ministers are understood to be assessing all options, in the event that Gazprom Marketing & Trading Retail fails.
Gazprom’s London-based subsidiary provides energy for a number of hospital trusts, councils and academies, as well as companies across the country.
It supplies more than a fifth of the energy used by commercial and public sector clients in the UK.
Gazprom Marketing and Trading doesn't sell to UK households and it buys energy from wholesale markets rather than importing gas directly from Russia.
UK customers have come under mounting pressure to end their ties with Gazprom, which is a key source of funds for the Kremlin.
Sajid Javid, the health secretary, urged NHS trusts to stop buying from Gazprom's UK subsidiary, after it emerged that public sector organisations had more than £100m of contracts with the firm between 2016 and 2021.
The subsidiary’s parent company has been sanctioned by the government.
Among the options being considered a special administration, Bloomberg reported. The process would result it Gazprom’s UK business temporarily being run by a third party on behalf of the UK government.
The special administrator would then work out the least damaging way to wind down the company or sell it on.
Bulb was the first supplier to be placed into special administration last last year, with £1.7bn of government funding set aside to cover costs.
A UK government spokesperson said: "Our highly diverse sources of gas supply and a diverse electricity mix ensures that households, businesses, and heavy industry get the energy they need."
"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."
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