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Centrica cuts ties with Gazprom following Ukraine invasion

Centrica has announced it is cutting ties with Russian state-owned energy company Gazprom following the invasion of Ukraine.

The firm currently has a medium-term contract with Gazprom Marketing and Trading, which supplies gas to its retail arm British Gas. The volumes are understood to account for a small fraction of the gas it sells to its customers.

The supply contract is not currently impacted by UK sanctions. However, Centrica said it is in discussions with Gazprom to explore how it can terminate the agreement.

In a statement, Centrica’s group chief executive Chris O’Shea said the company was “shocked by the events unfolding in Ukraine and the needless loss of lives”.

He added: “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.”

The move comes shortly after BP and Shell announced plans to dispose of their investments in the Russian oil and gas industry.