Ørsted is trapped in an unfortunate situation, having recently struck a long-term deal for natural gas deliveries from Russian energy company Gazprom. The agreement cannot be terminated even as the Western world is turning against Russia following the attack on Ukraine.

One option remains, however, for the utility, namely that legislature imposes a ban against Russian gas, writes Finans.

"If legislature decided to intervene with a ban against Russian gas imports, for instance, Ørsted's agreement with Gazprom would be rendered void. But this doesn't prevent Gazprom from bringing legal action against both Ørsted and the Danish state. The outcome of such potential lawsuits cannot be ascertained in advance," says assistant professor at University of Copenhagen Rasmus Grønved Nielsen to Finans.

At Ørsted, CEO Mads Nipper is prepared to shred the deal.

"With clear and far-reaching political sanctions, we are entitled to invoke force majeure on the contract. All potential sanctions in the context of the EU or nationally with an effect on gas supply would receive our full support, and we would respond to them immediately," comments Nipper in writing.

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