British energy firm Ecotricity has unveiled its commercial links with Russian companies as the pressure on companies to cut ties with Kremlin-linked companies is mounting.
Dale Vince, Founder of Ecotricity wrote on LinkedIn: “We have a trading relationship with them (Gazprom), that much we knew, they are one of about a dozen counterparties with whom we trade energy.
“We dug into the numbers in our trade book – turns out 5% of our gas is bought in advance (hedged) with Gazprom, for the next 12 months.”
Mr Vince continued: “We looked at the implications of breaking that contract. We would incur pretty massive penalties – the rule of law still applies here – of approaching £10 million. And they can easily sell that gas for more than we have agreed to pay for it.
“A double benefit when the intended effect of a boycott is a penalty. We concluded the best thing to do is see the contract through and then move on.”