Issue - meetings

Purpose.

1.    To update Cabinet as to the changes in structure of Gazprom Marketing and Trading Limited (" Gazprom M&T") trading as Gazprom Energy and the control of their parent company, Gazprom Germania, since the Cabinet decision in March 2022.

2.    To provide context, evidence and reassurance that conditions have significantly changed since March 2022, and that further, positive developments are likely in the coming weeks and months.

3.    To provide evidence that Gazprom M&T, nor its parent company Gazprom Germania, are directly buying Russian gas.

4.    To show that many of the risks associated with terminating the existing corporate gas contract ("the Contract") highlighted in the report to Cabinet in March 2022 (Appendix A of this report), remain.

5.       In light of these changes to approve recommendations which amends the decision made by Cabinet in March 2022, which instructed officers to terminate the contract with Gazprom M&T.

RECOMMENDED that

1.    Consider the content of this report, particularly the breakage of the link between Gazprom M&T with the Russian state, which was made by the change in ownership of the single shareholder; from the Russian Federation to Gazprom Germania on the 4thApril 2022.

2.    Notes the change in control of Gazprom Germania, the parent company and single shareholder of Gazprom M&T, enacted by the German Government resulting in Gazprom Germania being under the control of the German Federal Network Agency 4th April 2022.

3.    Cabinet notes that Gazprom M&T are not placing direct orders for Russian gas.

4.    Cabinet notes that Gazprom Germania is not directly placing orders for Russian gas and is prevented from doing so, should it wish to, by Russian sanctions.

5.    Cabinet notes the financial and legal risk, detailed within this paper and the paper of March 2022, associated with terminating the Contract in June 2022.

6.       Cabinet instructs officers in light of the changed circumstances not to terminate the Contract with Gazprom M&T on or before the 30thJune 2022, in line with the contract conditions.

1.     Considered the content of the report, particularly the breakage of the link between Gazprom M&T with the Russian state, which was made by the change in ownership of the single shareholder; form the Russian Federation to Gazprom Germania on 4 April 2022.

2.     Noted the change in control of Gazprom Germania, the parent company and single shareholder of Gazprom M&T, enacted by the German Government resulting in Gazprom Germania being under the control of the German Federal Network Agency 4 April 2022.

3.     Noted that Gazprom Germania is not directly placing orders for Russian gas.

4.     Noted that Gazprom Germania is not directly placing orders for Russian gas and is prevented from doing so, should it wish to, by Russian sanctions.

5.     Noted the financial and legal risk, detailed within this paper and the paper of March 2022, associated with terminating the contract in June 2022.

6.     Instructs officers in light of the changed circumstances not to terminate the contract with Gazprom M&T on or before 30 June 2022, in line with the contract conditions.