The company confirmed in a statement on Monday it would remain tied to Gazprom until 2030, prior to reports that Russia had threatened to cut natural gas supplies to Europe via the Nord Stream 1 pipeline in response to sanctions imposed over its invasion of Ukraine.
Ørsted had come under pressure to extricate itself from its contract with Gazprom, which supplies Russian gas to the Danish company.
The company said on Monday that this was not possible but that it had chosen not to extend the current deal when it expires in 2030.
“Ørsted has a long-term gas purchasing contract with minimum delivery obligations, a so-called ‘take or pay’ deal for buying gas with Gazprom Export,” the company said in the statement.
“The contract was entered into in 2006 and expires under its terms in 2030. The contract cannot be cancelled at the current time,” it said.
“The contract will not be renewed,” it added.
Ørsted also said in the statement that the company condemns the invasion of Ukraine by Russia and that it had made other moves to reduce partnerships with Russian companies.
This includes no longer purchasing Russian biomass or coal for Ørsted power plants and not signing any new contracts with Russian companies.
At a press briefing on Sunday, Prime Minister Mette Frederiksen expressed a wish to make Denmark “independent of Russian gas as soon as possible”, but did not specify a time frame.
The PM also said that Denmark would work with the EU on further sanctions against Russia, including a possible block on gas imports.
In its statement, Ørsted said it supported all political initiatives relating to independence from Russian gas, including political import sanctions if any were to be imposed.
The company also said it would donate profits from its own sales of Russian gas to humanitarian help in Ukraine.
“We have made the decision that we do not wish to profit from business with a state-owned company from an aggressive, war-waging nation,” Ørsted CEO Mads Nipper told news wire Ritzau.
The decision must be approved at the company’s AGM in April.