William Eichler 29 March 2022

Government urges councils to review contracts with Russian companies

Government urges councils to review contracts with Russian companies image
Image: Sergei Elagin / Shutterstock.com.

The Government has called on all public sector organisations, including local authorities, to urgently review contracts with Russian and Belarussian companies.

Russia’s invasion of Ukraine has been met with international condemnation and sanctions, with the UK imposing penalties on companies and individuals tied to the Putin regime.

The Cabinet Office has also issued guidance to public sector buying teams recommending that public bodies, including Government departments and hospitals, immediately seek to identify any contracts with Russian and Belarussian companies and, if it is possible to switch suppliers with minimal disruption, pursue legal routes of cancelling them.

‘Public money should not fund Putin’s war machine. We are asking hospitals, councils and other organisations across the public sector to urgently look at all the ways they can go further to sever their commercial ties to Russia,’ said Chancellor of the Duchy of Lancaster Steve Barclay.

‘The Government will continue to work closely with these organisations, ensuring they are able to take the necessary steps as quickly as possible, including taking legal routes where necessary.’

The public sector data specialists Tussell calculated that local authorities have spent over £29,200,000 with the state-owned Russian gas company Gazprom between 2016 to 2021.

Many councils have been reconsidering and even cancelling their Gazprom contracts in light of Russia’s Ukraine invasion.

Local government pension funds have also taken action to move investments away from Russian assets.

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner