NHS trusts in the region have spent millions of pounds on contracts with a Russian-owned energy firm in the last six years.

North Tees and Hartlepool NHS Foundation Trust, Newcastle Hospitals and Tees, Esk and Wear Valley (TEWV) NHS Foundation Trust, have all had contracts with Russian-owned Gazprom.

Health secretary Sajid Javid has said the NHS must stop using energy supplied by the firm, according to a government source.

Newcastle Hospitals had the biggest spend in the country, but ceased using the company in 2021, a spokesperson for the trust said.

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The trust accounted for £14.94 million of the spend through contracts with the firm between 2019 and 2021, with the largest annual spend of £7.95 million occurring in  2020.

A spokeswoman for the trust said it changed suppliers in April 2021 but did not comment further.

North Tees and Hartlepool NHS Foundation Trust accounted for £3.61 million of the spend through contracts with the firm between 2017 and 2021.

The largest annual spend of £1.26 million occurred in 2020.

It is understood the trust's contract runs until next year, and it would be costly to exit the agreement before that point - though it plans to not renew the contract. 

TEWV spent £103,032 through contracts with the firm between 2018 and 2020, with the largest annual spend of £51,112 occurred in 2018.

Figures provided by data firm Tussell show the total public sector spend in the UK with the Gazprom between 2016 and 2021 was £107 million – and nearly a quarter (£77 million) was from NHS trusts.

A government source told PA: “Sajid has spoken with NHS England and been clear that trusts need to stop using Gazprom as a supplier.

“He has also requested a wider review of any Russian role in supply chains across the health service.”

It comes after Lord Simon Stevens, former head of NHS England, told the House of Lords that “decarbonising the health sector will take pound notes out of the hands of dictatorial regimes that are engaged in acts of aggression”.

A Government spokesperson said: “We will work closely with councils and other public bodies to ensure they are able to comply with the financial and investment restrictions on Russia and will engage with them on what support they need to do this.

“The UK is in no way dependent on Russian gas supply and our highly diverse sources of gas supply and a diverse electricity mix ensures that households, businesses, and heavy industry get the energy they need.”

Meanwhile, a number of councils have said they want to end contracts with Gazprom and are considering alternative options.

Local authorities accounted for £29 million (27 per cent) of the public sector spend with Gazprom over six years.

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Suffolk and Manchester were the councils most reliant on Gazprom, each spending more than £4 million within that time.

A spokesperson for the Local Government Association said: “Councils are deeply saddened by the tragic events unfolding in Ukraine and are following the situation closely.

“It is up to individual councils to decide how to act locally but, like many organisations, they will be reviewing what action they might want to take in light of UK sanctions and the ongoing situation.”

WHAT IS GAZPROM?

Gazprom Energy, a subsidiary of Russia’s state owned gas and oil giant, has been one of the largest suppliers of gas for UK businesses since 2010.

Gazprom, which has its headquarters in St Petersburg, holds the world’s largest natural gas reserves and employs about half a million people around the globe.

The firm says it produces 13 per cent of all global gas and holds the world’s largest natural gas reserves.

A number of companies and public sector organisations are seeking to cut ties with the firm following Russia’s invasion of Ukraine.

In February, oil giant Shell announced plans to sell its stake in all joint ventures with Gazprom, calling Russia’s invasion of the country “senseless” and a threat to European security.

Data firm Tussell says the total UK public sector spend with Gazprom between 2016 and 2021 was £107m, with NHS expenditure accounting for £77m or 72 per cent of that.

A subsidiary of Gazprom’s marketing and trading arm, the gas it supplies to UK customers comes from a variety of sources, including Norway and Qatar.

According to its latest annual report, it supplied gas to 178,000 sites across the country in 2020.

It entered the UK energy retail market in 2006 when it acquired Pennine Natural Gas to create its first retail business outside Russia.

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