Siemens is forced to explain about gas turbines in the Crimea

On paper this thing looks clear: the sanctions that the European Union made in March 2014 after the annexation by Russia of the Ukrainian Peninsula of Crimea are strict. Firms are not allowed to do business in the Crimea — all without exception. Tour operators do not have the right to offer the trip. Public credit card did not function there. And equipment for power plants is also impossible to supply to the Crimea. These measures were adopted in December 2014. They are still valid.

This order now makes Siemens to give an explanation. For two gas turbines of the Munich technology group obviously appeared where they never had to get in the Crimea. They must generate electricity at a power plant.

According to news Agency Reuters, this equipment was delivered by ships from the Russian continent, in the port of Sevastopol. Obviously, it is intended to plant near this place. The Agency recalls that when participants and sources in the agencies who would like to remain anonymous. According to this, we are talking about gas turbines of type SGT5-200E, which are produced by subsidiaries of Siemens and must be serviced by engineers of this concern.

The manufacturer of these turbines is the company Gas Turbine Technologies LLC, located in St. Petersburg. Siemens has a 65% majority stake in this company and 35% owned by the Russian company Power Machines. Siemens in March 2015, entered into a contract with the Russian engineering company Technopromexport on the supply of four turbines, each with a capacity of 165 megawatts. They were intended for one of the new plant in Taman. This place is located on the coast of the Black sea, on the Russian continent, which is separated from Crimea by only a few nautical miles.

The explanation would give one caveat

In the summer of 2015 first reports: in fact, these turbines are intended for the same plant in Russia occupied the Peninsula, according to Russian media. Siemens made a retraction. One representative of the group said at the time that turbines are in any case will not be placed in the Crimea, because we signed the relevant agreements, which preclude resale. Tekhnopromeksport reported that these gas turbines are designed for “energy engineering projects in the Krasnodar region of the Russian Federation”.

“Technopromexport” is one of hundreds of affiliated firms government technology group “Rostek”. Its chief, Sergei Chemezov, once were together with Russian President Vladimir Putin in the Soviet secret service KGB in Dresden. In December 2015, “Technopromexport” was included in the sanctions list because it builds in the Crimea two stations in Sevastopol and Simferopol. They have to cover the deficit of 250 megawatts, which emerged after Ukraine reduced after the annexation of the supply of energy. Since constantly the case of a power failure.

In September 2016, “the company” has informed about the financial difficulties, moved away from the construction of the power plant in Taman, and put the turbines up for sale. Moscow economic newspaper “Vedomosti” reported that the purchase agreement provided that the buyer has no right to violate Russian sanctions, Germany, European Union, America or the UN. Besides, he had to ensure that this equipment shall be installed in the Crimea, and is not associated with the power system of the Crimea. Just as it explained the representative of Siemens in the summer of 2015.

With one difference: the clause was adopted to protect a mother’s concern “Rostek” of the complaints for damages, reported “Vedomosti”. If the buyer goes bankrupt, he nevertheless has the right to sell turbines for use in the Crimea.

Was just naive?

Representative of Siemens AG was announced on Thursday in this regard: “if the newly acquired turbine was moved to the Crimea, it would be a clear violation of Treaty obligations”. And further: Siemens has repeatedly made it clear the statement that “adheres to all regulations on export control”. According to him, the group will not perform any deliveries or services on installation and commissioning and will not assume any guarantees. Was just naive? Russia is easy to get in a sticky situation. Two weeks after the annexation, the head of Siemens Joe KAESER (Joe Kaeser) were guests in the residence of Putin. After the reception, he gave an interview and said Siemens is not governed by “long-term planning short-term turbulence.”

Today, he regrets his words. According to Russian media, the installation in the Crimea should be commissioned in September. However, the full power they achieved in March 2018 — the fourth anniversary of its accession to Russia. On this day next year Russia will hold presidential elections.