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Siemens mulls supplying turbines to Russia's energy facilities

November 09, 2017, 12:53 UTC+3

According to Russia's Energy Ministry, several companies are now holding tenders

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MOSCOW, November 9. /TASS/. German concern Siemens is considering the possibility of supplying high-capacity gas turbines to Russian power facilities, despite the company tightening the rules of work in the country after the situation with turbines in Crimea, Deputy Energy Minister Andrey Cherezov told reporters.

"Several companies are now holding large tenders with the same turbines, Siemens participates in these tenders," he said.

Cherezov noted that Siemens also showed interest in participating in the tender for supply of turbines to Taman TPP - the tender for construction will be announced in the near future. "I know that they are interested," Cherezov said.

He added that at present the volume of construction of power facilities has declined on the world, thus the market for the supply of high-capacity gas turbines is expected to contract. However, even if Siemens refused to work in Russia, the concern could be replaced by another company.

"I can only name five companies that produce the same turbine under different names, including American ones. When the issue was being discussed in terms of the price range, US GE turbines of the same power as Siemens could cost less under certain agreements," Cherezov said.

It was reported earlier that 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.

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.

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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