“Gazprom profits from North Sea gas amid UK concerns, sanctions.”
Russian energy behemoth Gazprom garnered €45 million from its North Sea gas field in the previous year, as reported in financial records. The company has been actively extracting gas from the Sillimanite field, situated across UK and Dutch waters, since 2020. Sir Ed Davey, the Liberal Democrats’ leader, condemned the use of UK territory gas to support Russia’s actions in Ukraine, labeling it “totally unacceptable.”
Government officials vowed to intensify economic pressure on Russia, in response to concerns over the Sillimanite field’s operations. The field operates as a joint venture between Gazprom and Wintershall, a German company, with gas transported to the Netherlands for onshore processing, located approximately 200km from the Dutch coast.
While the collaboration between Gazprom and Wintershall isn’t deemed illegal, the UK, US, and EU have imposed stringent economic sanctions aiming to limit Russia’s profits from energy exports and curb funding for the conflict in Ukraine. Gazprom executives, including CEO Alexei Miller, are under UK sanctions, but the company itself remains unaffected. Gazprom’s UK subsidiary registered a pre-tax profit of €45 million in 2022 and paid substantial dividends to its parent company in the Netherlands.
PJSC Gazprom, headquartered in Moscow and predominantly state-owned, stands as the ultimate proprietor. Gazprom contributes significantly to Russia’s economy, being its largest taxpayer, according to TASS. Criticism surfaced regarding the use of UK territory gas benefiting Putin’s regime amidst ongoing conflict in Ukraine. Global Witness labeled the UK’s stance on Russian oil and gas as “an indictment.”
The UK government defended its approach, emphasizing collaboration with partners to impede Russia’s access to goods or technologies supporting its military operations. Officials asserted that both Putin and his supporters would face consequences for the unlawful invasion of Ukraine, promising continued escalation of economic pressure until peace prevails. Gazprom’s tax payment of €29 million was divided between the UK and Dutch governments, including windfall taxes imposed after the Ukrainian conflict’s escalation.
Gazprom International UK ceased gas sales to Wintershall, establishing an agreement with the trading company Gunvor. The company’s UK energy supply business was nationalized by the German government and rebranded as SEFE Energy following its parent company’s near-bankruptcy status last year.