Prime Minister Keir Starmer's government is facing an important decision: Will it continue to warm most British state agencies through a company linked to Russian fossil fuels?
According to a current agreement in the public sector, TotalEnergies Gas & Power - a subsidiary in the UK of French energy group TotalEnergies - is supplying gas to heat the Prime Minister's Office, the Ministry of Finance and many other agencies in Whitehall.
The contract worth a maximum of £8 billion will expire early next year. British officials are preparing a public bidding process to select a replacement supplier. The new contract is expected to be awarded at the end of this year and take effect in the period 2027-2030.
Although it does not violate the Russian gas ban, the contract is still controversial as TotalEnergies continues to be associated with Russia's fossil fuel industry, leading to reactions from pro-Ukrainian groups and Labor MPs.
This group currently holds 20% of shares in the Yamal liquefied natural gas project in Siberia, where they still import Russian gas into Europe under long-term contracts that the company says cannot be unilaterally canceled.
A spokesman for TotalEnergies affirmed that the company "condemns Russia's military actions against Ukraine", while emphasizing that the corporation "operates legally within the framework of energy policy and sanctions imposed by the EU and member states".
TotalEnergies has been the main gas supplier for the UK's public sector since 2019, under two consecutive procurement contracts managed by Crown Commercial Service.
In a letter to Cabinet Secretary Nick Thomas-Symonds - in charge of the government procurement agency Crown Commercial Service - parliamentarians and the advocacy group warned that "continuing to sign contracts with companies related to Russia's energy sector is inappropriate" for Britain's long-standing goal of weakening revenue from Russian fossil fuels, which are used to finance the conflict in Ukraine.
Ms. Svitlana Romanko - CEO of Razom We Stand organization - said that Russian attacks on the energy system have paralyzed many electricity and heating systems across Ukraine in weather conditions down to minus 20 degrees Celsius.
We urgently call on the British government to terminate the contract with TotalEnergies" - Ms. Romanko said.
Observers believe that TotalEnergies is one of the key contractors because it has the ability to supply stable gas to a large-scale state agency network, from government headquarters to hospitals and public facilities.
In the context that the European energy market is still potentially volatile, replacing such a supplier in a short time is not a simple problem, as it is not easy to find partners that simultaneously meet requirements for output, continuity and cost.
