UK company to go through with sale of natural gas to Gazprom

While competitors cut ties with Russia, Independent Oil and Gas will complete sale to the Russian energy company.
Photo: Kirill Kudryavtsev/AFP / AFP
Photo: Kirill Kudryavtsev/AFP / AFP
BY MARKETWIRE, TRANSLATED BY CHRISTOFFER ØSTERGAARD

UK energy company Independent Oil and Gas aims to go through with a sale of natural gas to British branch of state-owned Russian company Gazprom, writes Financial Times.

The disclosure is highly controversial because the UK government has tried to push British companies to sever ties with Russia.

On Sunday, BP announced that it would divest a 20-percent stake in Russian oil company Rosneft.

This was followed by Shell announcing that it would withdraw from areas of cooperation with Gazprom, "shocked by the loss of life in Ukraine, which we deplore."

The sale is part of an old agreement between IOG and Gazprom. According to Financial Times, the parties shook hands on the deal several months prior to President Vladimir Putin commanding troops to invade Ukraine.

The agreement entails that IOG sells its share of natural gas recovered from the gas production facility Elgood, of which IOG owns more than 50 percent.

Gas recovery at the Elgood site is slated to commission within the next couple of weeks.

While other companies have severed connections with Russian businesses, IOG plans to complete a sale to Gazprom, of which the Russian state owns more than 50 percent, according to statistics agency Statista.

UEFA cuts ties with Gazprom

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BP divests stake in Rosneft 

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