Salford Mayor Paul Dennett has called upon the Government for guidance and extra cash to help 'cancel' a £1.8m contract with Russia's state owned GazProm which provides energy supplies to the majority of local schools and hospitals.
At the time of signing the contract was deemed to be the cheapest and most reliable (by a long way) during the procurement process, but that was before the current volatile situation in Ukraine unfolded.
Due to the impact of the recent geo-political events, the cost of gas has been vastly inflated as has the cost of fuel at the petrol pumps. Chancellor Rishi Sunak announced earlier this week that sanctions on Russia will not come without impact on the UK.
The councils contract is due for renewal in June but in light of the invasion and occupation of Ukraine by Russian military forces, the council does not wish to renew its contract and fears that current legislation would force them to do so as it goes out to tender. At present there is no legislation preventing GazProm or any of its subsidiaries from putting in a bid which would have to be legally considered as enshrined in UK procurement law.
The UK is currently imposing sanctions on President Putins regime but Mayor Dennett has called for clarification on the matter due to the ongoing conflict, he has also called upon the government to inject more cash into local authorities having to deal with increasing fuel costs as a result of the crisis in Ukraine.
In ending the contract with GazProm the council would find itself having to negotiate a deal with other companies which it is feared would seek to use the ongoing situation to take advantage of local authorities as they are forced to pay more.
The Government itself has stated that it wishes to end the reliance on Russian gas as well as remove the influence of Russian backed companies within the UK.
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