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Siemens exits Russian JV after Crimea turbines scandal

Friday, July 21, 2017 - 15:07

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German industrial group Siemens will exit its Russian power-plant joint venture Interautomatika following a scandal that saw four gas turbines it sold for use in Russia turn up in Crimea, a region subject to EU sanctions on energy technology.

[FRANKFURT] German industrial group Siemens will exit its Russian power-plant joint venture Interautomatika following a scandal that saw four gas turbines it sold for use in Russia turn up in Crimea, a region subject to EU sanctions on energy technology.

The Munich-based group said on Friday it had not yet uncovered any indication of violations of export-control regulations, but said it did now have credible information that the four of the turbines were in Crimea.

"This development constitutes a blatant breach of Siemens'delivery contracts, trust and EU regulations," it said in a statement.

"Siemens will fully divest its minority interest in the Russian company Interautomatika."

sentifi.com

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Sources have told Reuters that Interautomatika was involved in the installation and commissioning of the turbines in Crimea.

Siemens said it had reviewed its licensing agreements with Russian companies associated with the matter, and was reviewing potential collaboration between its subsidiaries and other entities around the world regarding deliveries to Russia.

It renewed its offer to buy back the turbines and cancel the original contract with Technopromexport (TPE), against whom it is taking legal action intended to stop further deliveries to Crimea and to return the turbines to their original destination of Taman in southern Russia.

REUTERS

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