Ukraine war: UK government to allow councils to sever Russian contracts
The UK government introduced legislation on Thursday to help councils, NHS trusts and other public bodies exit contracts with Gazprom and other Russian companies
Councils have been keen to withdraw from contracts amid concerns they were helping to fund Vladimir Putin’s regime. They had been prohibited from taking “non-commercial considerations” into account when procuring or terminating contracts, and they have a statutory duty to find the cheapest deal on behalf of the taxpayer.
Many councils had been forced to select Gazprom as a supplier because it offered the greatest value for money. They paid £29m to Gazprom from 2016 to 2021, data firm Tussell has said.
In March the Cabinet Office asked central government to review all contracts with Russia and Belarus-linked firms and to consider terminating those contracts. This process has now been extended to local councils.
Councils including Merton and Telford and Wrekin have said they are keen to cut ties with Russia.
A government source said: “Local authorities are not obliged to terminate contracts, but our message is clear: Putin’s barbaric regime should not benefit from taxpayers’ money.”
Communities secretary Michael Gove will now write to all councils to make them aware of the changes.
The government has said any costs incurred from exiting contracts will have to be covered by existing budgets.
The west is attempting to choke off the Russian economy to damage Putin’s war coffers and fuel anti-war sentiment among the Russian public.
A Department for Levelling Up, Housing and Communities spokesperson said: “Businesses with links to Putin’s murderous regime should not benefit from taxpayers’ money.
“These measures will allow councils to terminate existing contracts – ensuring
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