Gazprom’s gas production in UK-Dutch waters sparks political controversy

According to accounts, Russian energy firm Gazprom made €45m (£39m) from its gas field in the North Sea last year.

Gas Production Amidst Political Concerns

Gazprom, in collaboration with German firm Wintershall, has been extracting gas from the Sillimanite field, spanning UK and Dutch waters since 2020. 

However, the utilization of gas sourced from UK territory to support Russia amid the conflict in Ukraine has triggered political backlash.

Political Outcry and Economic Pressures

Sir Ed Davey, leader of the Liberal Democrats, condemned the situation, labeling it “totally unacceptable” that gas from UK territory aids Putin’s actions in Ukraine. 

In response, the UK government vowed to escalate economic measures against Russia, seeking to curtail its financial capacity linked to the conflict.

Sanctions and Efforts to Limit Russian Profits

While the gas extraction arrangement itself isn’t considered illegal, the UK, US, and EU have imposed stringent economic sanctions aimed at restricting Russia’s energy-related profits, thereby impeding its ability to finance the conflict in Ukraine.

Financial Insights and Impact

Despite Gazprom executives being under UK sanctions, Gazprom itself remains unaffected. Gazprom International UK, a subsidiary, reported a €45m pre-tax profit in 2022, paying dividends totaling €42.7m to Gazprom International Projects BV in the Netherlands, its immediate owner. This financial activity remains a subject of scrutiny amidst ongoing geopolitical tensions.