Siemens turbines supplied to Russia could surface in occupied Crimea

Germany`s Siemens says it has fulfilled its contract with Russia`s Technopromexport by supplying four gas turbines, while the buyer previously accused the manufacturer of contract breach.

”We have supplied turbines to Technopromexport,” CEO of the Siemens energy and gas production department in Russia Nikolai Rotmistrov said in an interview with Reuters. 

”Under the contract, Taman [peninsula] is the site for these turbines,” he said.

Technopromexport, the structure of Rostech state corporation, bought four turbines, 187 megawatts each, in March 2015 from a joint venture of Siemens and Alexei Mordashov`s Power Machines group – Siemens Gas Turbine Technology, where the German company owns 65% of shares.

See also: EU prolongs sanctions over Crimea crisis for another 6 months

The equipment was intended for the construction of a power plant on the Taman peninsula, both parties to the transaction reported.

In November last year, Technopromexport stated that the Russian ”subsidiary” of Siemens hinders shipments of part of the gas turbine equipment intended for Taman, thus blocking the turbines` operation. Siemens then declined to comment.

Part of the equipment has still not been delivered, Technopromexport said.

”Virtually all the terms of the contract for delivery of turbines to Taman by Siemens have been fulfilled, but some of the equipment is still being held up in the warehouses of the German company in violation of contractual terms,” the commentary says.

Earlier, Technopromexport, referring to financial difficulties, announced it intended to sell the turbines it had purchased from Siemens for the construction of a power plant on Taman. However, the competition for this project was never held.

See also: German Minister-President of Bavaria calls to lift sanctions against Russia in 2017

The company estimated turbines at least EUR 166.7 million.

Reuters sources said that Russia plans to install the turbines produced at the same plant at two power plants in Crimea, which are being built by Technopromexport.

However, EU sanctions imposed due to the annexation of Crimea by Russia prohibit European producers from supplying equipment to the occupied Crimea.

See also: Kremlin rules out another referendum in occupied Crimea for lifting sanctions

Siemens and Technopromexport categorically denied that the equipment of Siemens Gas Turbine Technology would be used in Crimea, informing that the only option for their delivery is the project in Taman, which is not yet being implemented.

”Taman is a territory of the Russian Federation, we do not violate sanctions,” said Rothmistrov.

Rostekh CEO Sergei Chemezov said in February this year that the Russian Federation would purchase the gas turbines for the Crimean power plants in Iran because of problems with the supply of European equipment.

He also said earlier that Technopromexport was ready to sell turbines to those who would build power plants in Taman or the city of Grozny.

See also: U.S. President expects Russia to return Crimea to Ukraine but Kremlin states that this is impossible and Crimea won’t be returned

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