Siemens Cuts Some Russia Ties Over Crimea Turbines Scandal

German Foreign Minister Gabriel addresses a news conference in Berlin

Siemens have earlier noted that the turbines delivered to a project in Taman in Russian Federation were moved to Crimea, which is a breach of contracts.

It added that it had not uncovered any indication of violations of Crimean sanctions on its own part.

In addition, Siemens intends to break licensing agreements with Russian state companies for the supply of equipment for power plants and suspend deliveries under existing contracts with all Russian companies controlled by the state.

However, Siemens said the equipment had since been locally modified and shifted to Crimea which it said breached European Union sanctions Russian Federation introduced in 2014 following over its annexation of Crimea from Ukraine. Siemens has a 45.7 percent stake in the business.

Dmitry Peskov, Putin's spokesman, declined to comment when asked by Reuters on Friday whether that was true.

Siemens said it is pressing charges against the Russian contractor, Technopromexport (TPE).

Before Russia invaded, Crimea was dependent on power supplies from Ukraine. However, those trains cost Moscow over 1 billion euros to buy and cover with a 30-year Siemens service contract.

The Munich-based company has halted deliveries of power-generation equipment to Russian state-owned companies, it said in a statement on Friday. It is also pursuing legal actions meant to halt any other deliveries to Crimea and ensure that any equipment that has already been shipped is returned to its original destination.

Siemens said it would put in place additional controls to ensure that energy equipment in future will only be dispatched once Siemens has confirmed it can be installed at the agreed destination.

Interautomatika had no immediate response to a request for comment.

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