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Turbines scandal with Siemens won't affect company’s cooperation with Russian Railways

On July 21, Siemens announced that all four gas turbines produced by the German company for a project in southern Russia have been delivered to Crimea, in breach of the agreements

DVORIKI /Vladimir Region/, August 16. /TASS/. The scandal over alleged supplies of Siemens turbines to Crimea will not affect the company’s cooperation with the Russian Railways, particularly the supplies of components for rail transport, Russian Railways’ First Vice President Misharin said Wednesday.

"This will not affect our cooperation. We have had a confirmation. Moreover, we plan to increase (the number - TASS) of Sapsan-type trains," he said.

In February, a source familiar with the plans of the Russian railroad monopoly told TASS that it intended to purchase eight high-speed Sapsan trains with the localization level of up to 40%.

As reported earlier, Siemens that has been working in Russia for more than 160 years revised its operating format and highlighted tougher framework of further cooperation with Russian energy companies because of turbines delivery to Crimea.

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On July 21, Siemens announced that all four gas turbines produced by the German company for a project in southern Russia have been delivered to Crimea, in breach of the agreements.

Siemens stressed that it has no plans to wrap up operations in Russia but will toughen the rules of operation in the country. From now on, it will implement new projects for development of gas turbine power generation equipment in Russia only through a joint venture with Power Machines - Siemens Gas Turbine Technologies (STGT), and its wholly-owned subsidiary, OOO Siemens, Moscow. All new engagements would be subject to a new, permanent control mechanism, the company said.

Russian Industry and Trade Minister Denis Manturov stressed, in connection with the scandal, that the Russian party showed maximum legal correctness when using Siemens technologies in production of turbines for thermal power plants in Crimea. The minister explained that Simferopol and Sevastopol thermal power plants would be equipped with turbines that were made in Russia with the use of foreign components. The turbines have a Russian certificate, the minister said.

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