Dutch govt urges cities to sever Gazprom contracts
Dutch cities would terminate their gas supply agreements with Russia's Gazprom and its affiliates by October 10, energy minister Rob Jetten told parliament on April 14, stating that doing so would not make them liable to damages claims under sanctions rules.
Cities had complained it would be difficult to axe existing deals, with many opting instead to wait until their contracts with Gazprom lapse. Reuters estimates that around 120 Dutch municipal authorities, most of them in smaller cities, have long-term contracts with a Dutch division of Gazprom located in the southern city of Den Bosch. Utrecht is the largest Dutch city partnered with the Gazprom unit, and expects its deal to expire in January 2024.
Dutch climate and energy minister Rob Jetten now says the contracts are "undesirable" and wants authorities to cancel as soon as possible. He said the EU sanctions regime had been amended to prohibit contract awards to Russian companies, although it was unclear how this relates to existing agreements. Jetten has been touting the successes of existing embargoes on Russian energy imports. On April 5, he noted that Russian oil and coal imports had decreased since Moscow's invasion of Ukraine in February.
Shell's oil refinery in Pernis is among the companies to have stopped Russian crude purchases, after the company said on February 28 it would withdraw from Russian oil and gas commitments. The Netherlands consumes relatively little Russian gas compared with its European peers. According to the Dutch Review, it buys 5bn m3 from Russian suppliers, to satisfy a share of annual gas demand estimated at 40bn m3.
In a letter to the national parliament, Jetten said: "In the fifth EU sanction package, member states have agreed that it is forbidden for tendering (government bodies) ... to award contracts to Russian parties in the Russian Federation, including their European subsidiaries."