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Siemens reports 4 turbines it produced ‘illicitly’ sent to Crimea 'contrary' to contracts

July 21, 2017, 10:11 UTC+3

All new engagements would be subject to the new, permanent control mechanism

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© AP Photo/Matthias Rietschel

BERLIN, July 21. /TASS/. All four gas turbines produced by Germany’s Siemens for a project in southern Russia have been delivered to Crimea, in breach of the agreements, Siemens reported.

"Siemens has received credible information that despite all recent and previous efforts all four gas turbines that were delivered in the summer of 2016 for the project in Taman, Southern Russia, have since been locally modified and illegally moved to Crimea against clear contractual agreements," the report says.

Besides, Siemens will fully divest its minority interest (46%) in the Russian company Interautomatika. This company was one of the contractors that installed turbines, the company’s report says.

The company also decided to halt deliveries from existing contracts to state-controlled customers in Russia.

"Siemens will halt power generation equipment deliveries from existing contracts to state-controlled customers in Russia for the time being," the report says.

The company said that at present its internal task force "rigorously investigates all units and relevant partners in Russia."

On July 11, Siemens filed an action against Russia’s Technopromexport (TPE) due to deliveries of gas turbine units to Crimea. The defendant in the case is the joint venture with Power Machines. However, according to the press service representative of the company, Wolfram Trost, claims have been filed against Technopromexport only. Siemens stressed that it wanted the turbines to be delivered to the initial delivery point - Taman. According to Reuters’ sources, Russia supplies Siemens turbines to Crimea, contrary to EU sanctions.

In response, Rostech, whose subsidiary - Technopromexport - is building thermal electric stations in Crimea stated that four turbines units for the stations had been purchased on the secondhand market. The turbine produce was not specified.

The Russian Siemens representative office refuted the fact of turbine deliveries to the peninsula, but stated later that at least two of the four turbines produced for a thermal power station in Taman had been delivered to Crimea.

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