Siemens will remain in Russia, but will tighten control over Russian energy companies

MOSCOW, July 21. /TASS/. The German company Siemens, working in Russia for more than 160 years, has revised the format of the work in Russia and outlined the more rigid framework of further cooperation with energy because of the situation surrounding the supply of turbines for thermal power plants in the Crimea. The group will continue the implementation of Russian projects in the energy and other industries.

On Friday, the company said that all four gas turbines for the Crimean thermal power plants (TPP) was made by Siemens and was raised on the Peninsula bypass sanctions of the European Union. The company, through the court intends to achieve a return on generating equipment. The situation has also become a cause for the initiation of Siemens inspections of Russian partners in the construction of power plants in compliance with export regulations of the EU and the temporary suspension of the supply of power according to existing contracts.

Without consequences for Crimea

The scandal surrounding the turbines, delivered to the Crimea, and their possible revocation will not lead to the postponement of the introduction of thermal power plants in Sevastopol and in Simferopol, believe in the Ministry of energy.

“The launch date of the two under-construction thermal power plants in Crimea will not be changed,” said TASS in the press service of the Ministry.

Included in the state Corporation “rostec” Technopromexport is building two gas-fired power plants with a capacity of 470 MW in Sevastopol and Simferopol. The commissioning of the first units of the plant to 470 MW is scheduled for early 2018.

For the Crimean TPP was planned to put the turbines, made by Siemens, but at the end of 2016 the company blocked shipments due to sanctions. In February this year, the head of Rostec Sergey Chemezov said that the Corporation completes negotiations with Iran on the supply of turbines for thermal power plants in the Crimea. But to negotiate the parties and could not.

After Reuters, citing sources reported that Russia has delivered in Crimea German Siemens turbine, despite EU sanctions, rostec, said, “Technopromexport” has acquired four sets of gas-turbine plants “aftermarket”. However, it does not specify who is the manufacturer of the equipment.

One of the contractors engaged in the installation of turbines, called the company “Interavtomatika”, in which Siemens owns 46%.

On Friday, the “Technopromexport” once again, he noted that the maintenance of turbines in the Crimea will be operated by Russian specialists and contractors.

The Minister of industry and trade of Russia Denis Manturov stressed that the Russian side has provided the maximum legal correctness in the use of Siemens technology in the production of turbines for thermal power plants in the Crimea. The Minister explained that the Simferopol and Sevastopol TPP will be equipped with turbines of Russian production, but with elements of foreign production. The turbines have a Russian certificate, noted Manturov.

Reaction energy

Russian generating companies are optimistic about the implementation of their investment programs in the new environment. This is partly due to the fact that they are mostly made up or complete the program of construction of energy facilities under contracts on capacity delivery (DPM).

“There is Mitsubishi Electric, which supplies including generating equipment. The Japanese company can come to the market and to offset a portion of lost volumes. There is a Chinese company, which also cannot be disregarded. They are also involved in the supply of generating equipment,, “Gazprom energy” already has experience with Chinese equipment,” – said Kornilov.

However, he added that at present the question remains whether Russian companies to conduct their own services for turbines manufactured by Siemens in the event of failure of the concern.

On Friday, Siemens also announced that it intends to withdraw from the share in the “Interavtomatika”, which owns 46%. “Interavtomatika” deals including the maintenance of gas turbines.