Eden Council is set to continue its contract with the UK arm of energy giant Gazprom.
Eden District Council heard calls to cut ties with Russian state backed gas giant Gazprom in April amid the invasion of Ukraine.
The council has a contract with Gazprom to heat its municipal buildings.
A decision was made to investigate the ownership of Gazprom UK and the possibility of terminating the contract early.
But the council’s scrutiny committee has heard that, following inquiries, the council will continue its contract with the UK arm of the company due to its associations with the German Government, not Russia.
Through its intermediary, Eden Council learned that “the changes that the Gazprom Germania, the parent of GM & T (UK) had made to distance itself from Russian control and funding.”
Changes at Gazprom mean that the council is not supporting a Russian state-backed company.
The German Government has taken control of Gazprom Germania and its trading arm Gazprom Marketing and Trading which owns GM and T.
It has also emerged that terminating their contract with Gazprom early could mean a 563 per cent increase, or £157,000 per annum.
The report laid before councillors at scrutiny reads: “Given the change in ownership and the huge increase in costs that would arise from breaking the existing contract the decision was taken to not seek to break the existing contract.
“The situation was though, to be kept under review and the council will take appropriate action should circumstances change.”
Their arrangement is set to remain under review because Germany’s involvement in the company is temporary so far.
The report reads: “Gazprom Germania GmbH will be renamed and operate under the name “SEFE Securing Energy for Europe GmbH” (SEFE).
“The subsidiaries of Gazprom Germania that currently use Gazprom trademarks will also be renamed in the near future.
“The actions taken have been done so to give customers and stakeholders full reassurance in terms of the financial security and future reliability of the companies and that the any ownership, control or cashflows with Russia have been ended.”
