Portsmouth City Council is set to make a U-turn on its decision to terminate its gas contract with Gazprom before its end date.

Leaders of the local authority will be asked to abandon their decision to axe the contract as the UK arm of the company does not have links with the Russian Government anymore.

A report written by Andrew Waggott, Head of Energy Services, states: “No money from the contract is flowing back to the Russian state.

“The change of shareholder of Gazprom M&T and the control of Gazprom Germania by the German Federal Agency breaks the link between the contract and Russia.

“Gazprom M&T has no direct contracts in place for Russian gas.”

The report also suggests terminating the contract with Gazprom M&T will have an inevitable cost increase to the council.

The council’s cabinet is expected to take a decision tomorrow.

Leader of Portsmouth City Council, Councillor Gerald Vernon-Jackson, told ELN: “It was absolutely right that we sent the really clear message to the Russian Government that we would not send them any money as a result of their invasion of Ukraine.

“But with the German Government stepping in and the breakage of the link between Gazprom with the Russian state, that is no longer an issue and the imperative that existed to end the contract no longer exists.

“Ending the contract will have an inevitable cost increase to the council, so we are also able to save a substantial sum of money if we do not terminate.”