Lawyers in Local Government issues guidance on reviewing contracts with Russian state-linked suppliers

LLG (Lawyers in Local Government) has issued guidance for local authorities reviewing contracts with Russian state-linked suppliers in light of the conflict in Ukraine.

LLG said it was aware that many local authorities are reported to be reviewing any contracts held with Russian suppliers linked to the Putin regime, and that the presence of such suppliers may be particularly likely in certain sectors (for example in the energy sector). 

The LLG guidance, which can be viewed here, sets out points that, in considering termination, a local authority may wish to consider in order to mitigate risk to their council: 

LLG, whichi issued a statement on the conflict earlier this week added: “Where the ability to terminate is not clear and/or the contract is high value LLG would encourage our members to consider taking a second opinion from external lawyers with specialism in this particular field.”

The guidance comes as the Leader of Merton Council revealed that the local authority is to write to the Government to ask for urgent changes to the laws around who councils can choose to do business with, as the London borough seeks to terminate a £1m gas contract with energy supplier Gazprom that is due to start on 1 April.

Suffolk County Council has meanwhile said that, following a review, it would end a £10m contract its wholly owned company Vertas Energy has with Gazprom.