Last year, Gazprom, a big energy company from Russia, made €45 million (£39 million) from a gas field in the North Sea, according to its accounts.
Gazprom has been getting gas from the Sillimanite field, which is in UK and Dutch waters, since 2020.
Sir Ed Davey, leader of the Liberal Democrats, said it is not okay for gas from the UK to support Putin’s illegal war against Ukraine.
The government said it would increase the pressure on Russia’s economy.
The Sillimanite field is 200km away from the Dutch coast. It is run by Russian company Gazprom and German company Wintershall together. The gas from the field is brought to land in the Netherlands.
The UK, the US and the EU have put strict rules to make it hard for Russia to make money from selling energy. This is to stop them from using that money to pay for the war in Ukraine. There is no proof that this is against the law.
Some top Gazprom leaders, including the boss Alexei Miller, are not allowed to do business with the UK government. But the company Gazprom itself is not affected by these rules. The company still sends gas to Europe through pipelines, but not as much as before the war.
Financial records indicate that Gazprom International UK, a branch of the large Russian energy company, made a profit of €45m before taxes in 2022. They also paid a dividend of €41m to their immediate owner company, Gazprom International Projects BV in the Netherlands. Another payment of €1. 7m was made in June this year.
The company is owned by PJSC Gazprom, which is located in Moscow.
It has also found and paid for its own soldiers to fight in Ukraine.
Sir Ed, who used to be in charge of energy, said it is very wrong that the gas from the UK is helping Putin’s war in Ukraine.
The campaign group Global Witness said it was a sign that the UK’s way of dealing with Russian oil and gas is not good.
“The government is against the war, but it doesn’t make sense to let a company owned by Russia make money from the North Sea while their militia fights in Ukraine,” the statement said.
A government representative said they will keep working with other countries to stop Russia from getting our goods and technology that they could use for their military. This will make it harder for Russia to fight in modern wars.
“Putin and his followers will suffer the consequences for unlawfully invading Ukraine,” he said.
We will keep making it harder for Ukraine’s enemies to make money, and we will punish anyone who tries to find ways around our sanctions. We won’t stop until Ukraine wins and there is peace.
The company had to pay €29 million in taxes. They split the money between the UK and Dutch governments. This means that the energy companies had to pay €4m in taxes in the UK because of high prices after the war in Ukraine, and €5m in taxes in the Netherlands.
The money Gazprom International UK makes comes from selling things to other countries, the records show. The company stopped selling gas to Wintershall in September and started selling it to Gunvor, a Swiss-based trading company, according to the accounts.
Gazprom’s energy supply business in the UK was taken over by the German government last year because its parent company was about to go bankrupt. The business had many business customers. Its new name is SEFE Energy.
Wintershall and Gazprom didn’t answer the BBC’s questions.
Tag: Gazprom
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Russian gas giant Gazprom earns £39 million in profit
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Canada is raising funds for Ukraine through the sale of bonds
Canada announced on Friday that it will sell a five-year government-backed bond to raise funds for Ukraine.
It will also impose new sanctions on 35 Russian individuals, including executives from Gazprom.
“Canadians will now be able to go to major banks to purchase their sovereignty bonds, which will mature with interest after five years,” Prime Minister Justin Trudeau said.
“These funds will go to support the government of Ukraine so they can continue to support the Ukrainian people.”
Mr Trudeau did not say when the bonds would go on sale.
The proceeds will “help the (Ukrainian) government continue operations, including providing essential services to Ukrainians, like pensions, and purchasing fuel before winter,” a statement added.
The equivalent of the income raised will be channelled “directly to Ukraine” through an International Monetary Fund-administered account.
Mr Trudeau also announced new sanctions on 35 senior officials of energy sector entities, including Gazprom “and its subsidiaries,” according to a statement, plus six other “energy sector entities.”
“We will continue to tighten the screws on anyone abetting this illegal invasion,” he said.
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Gazprom: NATO mine destroyer discovered at Nord Stream 1 in 2015
According to a Gazprom official, 2015 saw the discovery of a NATO mine destroyer near the Nord Stream 1 offshore gas pipeline.
The spokesperson, Sergei Kupriyanov, said the device was pulled out and rendered harmless by the Swedish arm forces.
Earlier today, Swedish Prime Minister Magdalena Andersson said it would not share findings of an investigation into the explosions of the Nord Stream gas pipelines with Russian authorities or Gazprom.
A Swedish crime scene investigation of the Nord Stream 1 and 2 gas pipelines from Russia to Europe has found evidence of detonations and prosecutors suspect sabotage.
Last week Russian Prime Minister Mikhail Mishustin sent a letter to the Swedish government demanding that Russian authorities and Gazprom be allowed to be involved in the investigation.
And today, Ms Andersson said Sweden would not share the findings of the explosions that took place in the Swedish economic zone, with Russian authorities.
“In Sweden, our preliminary investigations are confidential, and that, of course, also applies in this case,” she told reporters.
However, Ms Andersson said Sweden had no power to stop Russian vessels from visiting the sites of the explosions now that the crime scene investigation was concluded.
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Russian-Ukraine war: EU proposes to regulate Russian gas prices
The EU is preparing its own kind of response after Russia shut down the main Nord Stream 1 pipeline a few days ago, but it acknowledges that consumers and businesses are already paying “astronomical rates.”
A new confrontation between the European Union and Russia over gas supplies appears to be imminent.
The bloc has revealed plans for a price cap on Russian gas imports in retaliation for the war in Ukraine and measures to help member states cope with the energy squeeze.
Ursula von der Leyen, the president of the European Commission, laid out five proposals on Wednesday, hours after Russia’s leader threatened to turn off the taps to any Western nations moving to impose price caps on his country’s energy.
She said Russia had become an “unreliable supplier” after state-run Gazprom’s decision to turn off the taps on the major Nord Stream 1 pipeline indefinitely last week, adding that the EU’s reliance on Russian gas had fallen significantly since the invasion and stocks were back at 82% across the bloc.
One of the other measures however betrayed the perilous position the bloc continues to face ahead of winter.
She also planned a cap on the revenue of non-gas fuelled generators – bolstered by record raw energy costs – to re-channel their “unexpected profits” into measures that support households and companies.
Image: Ursula von der Leyen said consumers across the EU were facing ‘astronomic’ bills A windfall tax on fossil fuel firms was also on the cards, she said, along with aid for utility providers struggling under the weight of wholesale prices.
The plans, which will have to be agreed upon by member states, may face opposition.
Some EU countries are wary of capping Russian gas prices in case that costs them the dwindling supply they still receive from Moscow.
It follows confirmation that the UK is planning to bring down its own energy bills through a taxpayer-funded bailout. The details are expected this week.
Ms Von der Leyen explained that the planned cap on wholesale prices from Russia was now possible after the bloc had eased its reliance on Russian energy.
“We have increased our preparedness and weakened Russia’s grip on our energy supply through demand reduction – which allowed our common storage to be at 82%,” she said.
“Through diversification, we have increased deliveries of LNG or pipeline gas from the US, Norway, Algeria, Azerbaijan, and others. For example, Norway is now delivering more gas to the EU than Russia.”
The UK has also been pumping record volumes to the EU via interconnectors for months as part of EU efforts to bolster storage.
Ms Von der Leyen said Russian gas accounted for 9% of imports, down from 40% in February before the invasion of Ukraine.
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Ukraine war: Zelensky warns that Russia intends to disrupt Westerners’ normal way of life
Ukrainian President Volodymyr Zelensky, says Russia intends to ruin every European citizen’s ability to live a normal life.
In his regular address on Saturday, Mr. Zelensky stated that “it is trying to attack with poverty and political disarray where it cannot yet attack with missiles.”
A few hours earlier, Russia had announced that its main gas pipeline to Europe would not reopen as scheduled.
Europe accused Russia of using its gas supplies to blackmail Europe amid the Ukraine conflict, which Moscow denies.
Energy prices have soared since Russia invaded Ukraine on 24 February and scarce supplies could push up costs even further.
There are growing fears families in the EU will be unable to afford the cost of heating this winter.
Governments across the continent are contemplating what measures to take to alleviate the crisis.Germany – one of the countries worst affected by the Russian supply disruption – announced a €65bn (£56bn) package of help on Saturday.
Chancellor Olaf Scholtz said Russia was no longer a reliable energy partner.
IMAGE SOURCE,REUTERSImage caption, The Nord Stream 1 pipeline in Lubmin, GermanyThe stand-off with Russia has forced countries to fill their own gas supplies, with Germany’s stores increasing from less than half in June to 84% full today.
Europe is attempting to wean itself off Russian energy in an effort to reduce Moscow’s ability to finance the war.
Russia’s state energy firm Gazprom announced on Saturday the Nord Stream 1 pipeline could be closed indefinitely.
The pipeline, which runs to Germany, had been shut for three days for what Gazprom described as maintenance work and had been due to reopen.The interruption of the service was “sadly no surprise”, EU Council President Charles Michel said.
“Use of gas as a weapon will not change the resolve of the EU. We will accelerate our path towards energy independence. Our duty is to protect our citizens and support the freedom of Ukraine,” he tweeted in response to Gazprom’s announcement.
Moscow denies using energy supplies as an economic weapon against Western countries supporting Ukraine.
It has blamed the sanctions for holding up routine maintenance of Nord Stream 1, but the EU says this is a pretext.
Gazprom’s announcement came shortly after the G7 nations agreed to cap the price of Russian oil in support of Ukraine.
The G7 (Group of Seven) consists of the UK, US, Canada, France, Germany, Italy, and Japan.
Their introduction of a price cap means countries that sign up to the policy will be permitted to purchase only Russian oil and petroleum products transported via sea that are sold at or below the price cap.
However, Russia says it will not export to countries that participate in the cap.
The gas pipeline stretches from the Russian coast near St Petersburg to north-eastern Germany and can carry up to 170 million cubic metres of gas a day.
This is not the first time since the invasion that the Nord Stream 1 pipeline has been closed.
In July, Gazprom cut off supplies completely for 10 days, citing “a maintenance break”. It restarted again 10 days later, but at a much-reduced level.
In his address, President Zelensky said: “This winter, Russia is preparing for a decisive energy attack on all Europeans.”
He said only unity amongst European countries would offer protection.
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War in Ukraine: Russia to keep a vital gas route to the EU shut
National energy company Gazprom has disclosed that the gas pipeline from Russia to Germany won’t resume on Saturday as scheduled.
The Nord Stream 1 pipeline would be permanently shut down after the company claimed to have discovered an oil leak in one of its turbines.
For the past three days, the pipeline has been closed for what Gazprom has referred to as maintenance work.
The news comes amid growing fears that families in the EU will not be able to afford the cost of heating this winter.
Energy prices have soared since Russia invaded Ukraine and scarce supplies could push up the cost even further.
Europe is attempting to wean itself off Russian energy in an effort to reduce Moscow’s ability to finance the war, but the transition may not come quickly enough.
EU Council President Charles Michel said the Russian move was “sadly no surprise”.
“Use of gas as a weapon will not change the resolve of the EU. We will accelerate our path towards energy independence. Our duty is to protect our citizens and support the freedom of Ukraine,” he tweeted.
Moscow denies using energy supplies as an economic weapon in retaliation for Western sanctions imposed following Russia‘s invasion.
It has blamed the sanctions for holding up routine maintenance of Nord Stream 1, but the EU says this is a pretext.
Germany’s network regulator, the Bundesnetzagentur, said the country was now better prepared for Russian gas supplies to cease, but it urged citizens and companies to cut consumption.
Gazprom’s announcement came shortly after the G7 nations agreed to cap the price of Russian oil in support of Ukraine.
The G7 (Group of Seven) consists of the UK, US, Canada, France, Germany, Italy, and Japan.Their introduction of a price cap means countries that sign up to the policy will be permitted to purchase only Russian oil and petroleum products transported via sea that are sold at or below the price cap.
However, Russia says it will not export to countries that participate in the cap.
The gas pipeline stretches from the Russian coast near St Petersburg to north-eastern Germany and can carry up to 170 million cubic metres of gas a day.
It is owned and operated by Nord Stream AG, whose majority shareholder is Gazprom.
Germany had also previously supported the construction of a parallel pipeline – Nord Stream 2 – but the project was halted after Russia invaded Ukraine.
Gazprom said the fault had been detected at the Portovaya compressor station, with the inspection carried out alongside workers from Siemens, the German firm that maintains the turbine.
It said that fixing oil leaks in key engines was only possible in specialized workshops, which had been hindered by Western sanctions.
However, Siemens itself said: “Such leaks do not normally affect the operation of a turbine and can be sealed on site. It is a routine procedure within the scope of maintenance work.”
This is not the first time since the invasion that the Nord Stream 1 pipeline has been closed.
In July, Gazprom cut off supplies completely for 10 days, citing “a maintenance break”. It restarted again 10 days later, but at a much-reduced level.
Speaking to the BBC from the Swiss capital Bern, an economist and energy analyst, Cornelia Meyer, said the gas shutdown would have a major impact on employment and prices.
“That really has huge ramifications for gas in Europe which is about four times more expensive than it was a year ago and this cost of living crisis will really soar because it’s not just gas,” she said. “Gas becomes fertilizer and it’s used in many industrial processes, so that will affect jobs, and it will affect costs.”
The flow of gas through Nord Stream 1 had already been reduced to a relative trickle. Now, once again, it has been halted completely.
An oil leak, claims Gazprom – which has previously attributed reduced flows through the pipeline to technical issues related to sanctions.
Europe, though, believes President Putin is weaponizing gas supplies – deliberately limiting flows through the pipeline to push up prices, in order to test the resolve of Russia’s critics.
The result, as we’ve already seen, is soaring energy costs – with businesses and consumers paying a heavy price.
The timing of Gazprom’s move is certainly interesting. It comes on the same day the G7 announced moves to cap the price of Russia’s oil exports.
But it also comes shortly after Germany – which is heavily reliant on Russian gas – revealed that its winter storage was filling up faster than expected.
A cynic might say this was the last opportunity to tighten the screw, in order to inflict maximum damage over the colder months.
