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Court rejects Siemens bid to waive 'Crimean turbines' lawsuit

November 02, 2017, 12:10 UTC+3

The German company viewed the action filed to the Moscow Arbitration Court as "another option for return" of turbines

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© Alexander Riumin/TASS

MOSCOW, November 2. /TASS/. The Moscow Arbitration Court denied the request of German concern Siemens in suspension of consideration of the first lawsuit against Rostec's Tekhnopromexport in the case regarding turbines for the Crimean thermal power plants, TASS reports from the courtroom.

Siemens announced motion to suspend the case at the beginning of the meeting, arguing that another lawsuit is being considered in the court involving Siemens Gas Turbine Technologies (STGT), the requirements for which intersect with the first lawsuit.

Earlier the Ninth Arbitration Court of Appeal denied granting of the appeal filed by Siemens on seizure of Crimean turbines in a dispute with Technopromexport. Siemens demanded seizure of four SGT5-2000E gas turbine units and prohibition of transportation, installation, operation, modification, disassembly or any other use of turbines, Technopromexport told reporters.

The Moscow Arbitration Court is currently considering two claims. The first one was field by Siemens and the next court session is scheduled to November 2. Siemens Gas Turbines Technologies (SSGT), the joint venture of Siemens and Power Machines, is the claimant in the second lawsuit, with proceedings postponed until December 11.

Turbines for Crimean thermal power plants

Russian company Technopromexport is building two gas thermal power plants with a capacity of 470 MW in Sevastopol and Simferopol in Crimea. The plants will be commissioned on June 18, 2018.

In July 2017, a scandal broke out over the supply of turbines for those TPPs.

It was planned that turbines produced under Siemens technology will be installed at the plants but at the end of 2016 the German company halted deliveries because of the EU sanctions.

Reuters reported in July, citing sources, that Russia, despite sanctions, supplied the Siemens turbines to the Crimea. The German company later confirmed that all four gas turbine units for the Crimean thermal power plants turned out to be manufactured by Siemens and were supplied to the peninsula bypassing the EU sanctions. After that, Siemens filed a lawsuit against the representatives of Technopromexport.

In its turn, Russian state corporation Rostec said that Technopromexport had purchased four sets of gas turbine units "on the secondary market" and the manufacturer of the equipment was not specified.

Russian Industry and Trade Minister Denis Manturov stressed in connection with the scandal that the Russian party showed the highest 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.

Siemens announced that it stops supplying its equipment to Russia companies. Siemens also announced that it would halt deliveries of energy equipment to Russian companies.

In its turn, Technopromexport filed a counterclaim against Siemens and Siemens Gas Turbines Technologies.

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