Danish energy firm Ørsted said on Monday it was preparing for potential disruptions to its gas supplies from Russia's Gazprom, due to sanctions, and would give any profits from the contract to humanitarian aid in Ukraine.
Ørsted, which is 50.1% owned by the Danish state, sold its oil and gas assets in 2017 to focus on offshore wind energy, but still buys gas from Gazprom due to a long-term supply deal signed in 2006, which runs until 2030 and cannot be breached.
Ørsted, formerly named DONG Energy, sells the Gazprom gas to Danish and Swedish business and wholesale customers, but said on Monday that it will donate all net profits from the Gazprom contract to humanitarian aid in Ukraine.
Gas volumes not transported to Denmark and Sweden are sold in northwestern Europe, it said.
"Ørsted is now taking steps to balance the risk against a scenario where the supply of Russian gas is disrupted or sanctioned by reducing the overall hedge level related to the Gazprom Export contract," it said in a statement.
British and Dutch gas prices hit new record highs on Monday after Washington at the weekend said the United States and European allies are exploring banning imports of Russian oil.
Ørsted could legally breach the contract if sanctions against Russian gas are imposed and would support such a move, its Chief Executive Mads Nipper told Reuters.
"If measures are to be taken to hit the Putin regime, which we wholeheartedly support, the only thing that will work is EU sanctions," he said.
Ørsted said it had decided to donate potential net profits from the Gazprom contract after tax and hedges to humanitarian aid in Ukraine if the firm's annual general meeting approves the plan.
"We simply do not want to make money on a state-owned company from an aggressive warring nation," Nipper said, declining to estimate the amount.
Oil major Shell said on Saturday it will put profits from any Russian oil it purchases into a fund that will go towards humanitarian aid to Ukraine.
(Reporting by Stine Jacobsen; Editing by Susan Fenton)