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Monday, November 20, 2017

Siemens stops the supply of power equipment for Russian companies due to the Crimean turbines

German company Siemens broke the license agreement on the supply of equipment for Russian power plants. Siemens announced that four gas turbines produced by the company for power plant in Taman, was staged in Crimea is contrary to the agreements. In Moscow insist that the machines are of domestic origin.

photo: Gennady Cherkasov

Siemens stops the supply of equipment for power plants in Russia, including the existing contracts with government customers. Moreover, the concern intends to abandon the non-controlling interest (46%) in the “Interavtomatika”. This company was one of the contractors engaged in the installation of turbines in the Crimea.

To the concern it is noted that Siemens has received credible information that all four gas turbines, which were delivered in the summer of 2016 in Krasnodar Krai for power plant in Taman, was “locally modified and illegally moved” to Crimea in breach of contract.

The EU sanctions ban the supply to the Peninsula energy technologies. So, Siemens may be accused of violating the sanctions regime. German company offers to buy all four gas turbines and to cancel the contract on further deliveries.

Earlier, the press Secretary of the President of Russia Dmitry Peskov said that the turbines, which were delivered in the Crimea for the construction of thermal power stations are of domestic origin.

Sanctions . Chronicle of events

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