The implications of the Crimean crisis

At the Board level of Siemens AG is currently dominated by primarily one theme. “Crimea, Crimea, Crimea”, — said one Manager. Scam with four gas turbines that are against the will of the group and, perhaps, in violation of the Treaty was moved from the South of Russia in the Crimea, threatens the reputation and business. Even if Siemens considers himself a victim of the criminal actions, concern even allow the personal consequences. For example, some have accused head of representative office in Russia Dietrich Meller (Dietrich Möller) that he had waited too long with this theme, when it appeared the first signs of abuse with a possible violation of sanctions. “It was more likely to raise the alarm,” say the critics.

For example, Siemens is only now announced a decisive action. Under existing contracts with state-controlled customers in Russia Siemens suspends the supply of equipment for power plants. The new mechanism should ensure maintaining control Siemens, until the installation of the systems at the destination. “There is no cash and carry,” said one insider. Besides they refuse, among other things, from its minority participation in the service business “Interavtomatika”. The Kremlin is sticking to his story — what we are talking about Russian turbines.

Also, the state Duma Deputy Mikhail Sheremet, a member of the state Duma Committee on energy and former Deputy Prime Minister of Crimea, said, “This is ridiculous. I don’t know why so much hysteria around these turbines, which our country produces itself technologically”. It is officially stated that “delivered to the Crimea turbine of Russian origin, not German.” In Russia, officials hinted that the announced on Friday by Siemens steps can cause damage to the company.

So, Deputy head of the Duma Committee on economic policy Vladimir Gutenev said that this is a good chance to advance “import substitution”. About this strategy, the Russian leadership said after the sanctions, in order to make domestic products competitive with the imported still. Deputy Chairman of the Federation Council Committee on economic policy Sergey Shatirov said that Siemens will lose a lot. Ultimately this concern, he said, is actively working in the country for decades. Recently, the turnover of Siemens in Russia amounted to approximately 1.2 billion euros. In the industrial circles, based on the fact that Siemens, if necessary, ready to go to some losses in business.

After the largest German bribery scandal in Munich was proclaimed the slogan: “Now only the pure transaction”. In the circles of the group exclude the possibility that the leadership of the group over the contract 100 million euros knowingly risked reputation. “There, on the Russian side, there was a big criminal energy,” says one insider. These treaties, he said, is clear: from Russia constantly received confirmation that these turbines will be delivered to the Taman.

According to the newspaper Wirtschaftswoche, the President of Russia Vladimir Putin has promised the German government that these turbines will not be in the Crimea. And yet within the group, many argue. In the most crucial time for Russia answered the former Chairman Russwurm Siegfried (Siegfried Russwurm). “But it would be wrong to pin all this on him,” says one business expert. Rather, it is necessary, in his opinion, to argue about the actions of the current representative in Russia Muller. In Taman, they say, was the building of fences and signs, supported møller’s another insider. In addition, this project provides all the energy plans of the Russian government. No one could have predicted that these turbines will go to the Crimea.

“These actions represent a scandalous violation of the contracts with Siemens, breach of confidence and of EU rules,” the official said Siemens. Had taken all “possible measures to prevent it.” So now there may come a glacial period between Siemens and the state-controlled customers in Russia. “Probably, Siemens only time will cease supply of equipment for power plants, until will not be clarified by this case,” — said the first Vice-President “Russian Union of engineers” Ivan Andrievsky. According to him, Siemens won’t leave for a long time this important market.