A contract with the UK arm of energy giant Gazprom will continue, Eden District Council has said, after carrying out investigations.
I emerged that municipal buildings in Penrith are heated by Gazprom, a Russian state-backed firm.
Council bosses were urged to sever ties with the firm immediately in light of Russia’s invasion of Ukraine.
But in a lengthy statement, a spokesman for Eden Council has told the Local Democracy Reporting Service that following an investigation, it has emerged the contract is in fact with a German-controlled arm of Gazprom.
An Eden District Council spokesman said: “The council through its intermediary have investigated the ownership of Gazprom and approached them to terminate the contract early.
“This has shown that the UK arm of Gazprom now falls under the control of the German government, as they have taken control of Gazprom Germania and its trading arm Gazprom Marketing & Trading, which owns Gazprom UK.”
They said that the council currently pays 2.13p per kilowatt hour for the gas it uses, “the best deal on the market currently stands at 12p per Kwh which represents a 563 per cent increase.”
Gazprom refused the council an early exit of the contract. Eden would be in breach of the contract if it chose to do so.
The spokesman said: “The change in ownership means that the council’s contract is with the German government and not with Russia.
“EDC therefore has no direct contract with Russia for its gas supply. Given this change in ownership, the huge increase in costs and the need to break the law to exit, the council has taken the decision to continue with the existing contract.
“The situation will though be kept under review and the council will take appropriate action should circumstances change.”
In addition, they reiterated the council’s previous assertion that it “utterly condemns the Russian invasion of Ukraine and gives our support to Ukrainian citizens.”
Penrith Town Hall is being lit up in the colours of the Ukrainian flag in the evenings.
