Russian giant Gazprom moves to quell Brexit relocation fears

Oil storage tanks stand illuminated at night in the central processing plant for oil and gas at the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia, on Tuesday, Feb. 4, 2014. Salym Petroleum Development, the venture between Shell and Gazprom Neft, has started drilling the first of five horizontal wells over the next two years that will employ multi-fracturing technology, according to a statement today. Photographer: Andrey Rudakov/Bloomberg
Oil storage tanks stand illuminated at night in the central processing plant for oil and gas at the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia, on Tuesday, Feb. 4, 2014. Salym Petroleum Development, the venture between Shell and Gazprom Neft, has started drilling the first of five horizontal wells over the next two years that will employ multi-fracturing technology, according to a statement today. Photographer: Andrey Rudakov/Bloomberg

Russia’s state-owned energy giant Gazprom has moved to quash speculation it is looking to relocate its London operations due to fears over trade barriers after Brexit.

The firm’s deputy chairman said London-based Gazprom Marketing and Trading (GM&T), which takes part in the company’s global trading, retail carbon and liquefied natural gas business, would not be impacted by Britain’s divorce from the EU.

“The operations of Gazprom’s London-based unit Gazprom Marketing and Trading are not affected by Brexit,” Alexander Medvedev said in a statement.

“GM&T operates worldwide, and focuses on trading, LNG and UK retail, while European business is mostly covered by the long-term contracts of Russian-based Gazprom Export.

“The announced Brexit has not impacted our activities on the UK gas market, neither the LNG portfolio.”

His statement follows speculation Gazprom is considering moving GM&T operations out of London.

It has been reported a review was launched amid concerns over Brexit trade tariffs that could raise the cost of doing business with its most important export market, the EU.

GM&T was set up in London in 1999 and employs around 450 staff, while a further 100 employees are based at its site in Manchester, which focuses on retail operations, according to its website.

Gazprom’s website identifies London as GM&T’s headquarters, but lists other offices in France, Switzerland, Singapore and the US.

GM&T is owned by Gazprom Export, which falls under the Gazprom Group umbrella.

The parent company is more than 50% owned by the Russian state.

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