British Gas owner Centrica to exit Russia gas supply contracts

British Gas owner Centrica has said it will exit its gas supply agreements with Russian counterparts, including Gazprom, following the invasion of Ukraine.

It comes after a number of UK energy companies, including BP and Shell, moved to sever their ties to 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 giant’s UK entity, through which gas can be sourced from the open market.

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

Chris O’Shea, chief executive officer of Centrica, 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.”

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

It came after BP said it would divest its 25 billion dollar stake in Rosneft, where it owned a 20% shareholding and held two board seats.