Enter your email to read this article
Read news on any topic, in one place, from publishers like The Economist, FT, Bloomberg and more.

British Gas owner follows BP and Shell in cutting Russia ties

Gazprom supplies gas to Centrica, which it then sells to British households.
Gazprom supplies gas to Centrica, which it then sells to British households. Photograph: Sergei Ilnitsky/EPA

The British Gas owner Centrica has become the third big British energy firm to cut ties with Russia within a week, echoing BP and Shell by announcing the end of its gas supply agreement with Kremlin-controlled Gazprom.

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

“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.”

Gazprom supplies gas to Centrica, which it then sells to British households.

The agreement is understood to account for a fraction of what Centrica supplies to its customers and the gas is not physical gas molecules from Russia.

The partnership is not covered by sanctions but Centrica, Britain’s biggest supplier of gas and electricity, has begun talks with Gazprom about unwinding the deal.

Shell said on Monday evening that it would withdraw from its own partnership with Gazprom, signalling an exit from assets worth $3bn, including a 27.5% stake in the vast Sakhalin-2 gas project.

BP had earlier vowed to offload its $14bn stake in the Russian state-owned oil company Rosneft.

Related Stories
British Gas owner Centrica to exit Russia gas supply contracts
It comes after a number of UK energy companies, including BP and Shell, moved to sever their ties to Russia because of the conflict.
From analysis to the latest developments in health, read the most diverse news in one place.
Shell cuts ties with Gazprom as Britain steps up sanctions on Russia over Ukraine invasion
‘We are shocked by the loss of life in Ukraine’ says oil giant chief executive
UK firms rush to dump Russian assets amid efforts to isolate Moscow
British Gas owner Centrica cuts ties as Legal & General, Abrdn and Nest all try to sell stocks
UK businesses and fund managers scramble to cut ties with Russia’s Kremlin-linked firms
British Gas, Total, and City fund managers in charge of trillions of pounds are rapidly dropping investments in Russia in response to Ukraine invasion
English councils seek to end contracts with Russian-owned gas firm
Merton and Suffolk councils want to pull out of Gazprom deals to show solidarity with Ukraine
One place to find news on any topic, from hundreds of sites.
Shell to sell all stakes in Gazprom joint ventures
The oil giant said the Russian invasion was “senseless” and that it will divest its stakes worth around three billion dollars.