Siemens cuts ties with Russian State Companies over rerouting of gas turbines to Crimea


nsnbc : German manufacturer Siemens suspended cooperation with several Russian state companies and pursues criminal charges following what Siemens describes as credible information that gas turbines, delivered to Russia, were rerouted to Crimea.

Photo courtesy Siemens Press Service.

Photo courtesy Siemens Press Service.

Siemens stated that it has received credible information that despite all recent and previous efforts, all four gas turbines that were delivered in the summer of 2016 for the project in Taman, Southern Russia, have since been locally modified and illegally moved to Crimea against clear contractual agreements.

Siemens stressed that this development constitutes a blatant breach of Siemens’ delivery contracts, trust and EU regulations. The German engineering, manufacturing and technology powerhouse said it continues to pursue criminal charges against the responsible individuals at its customer, TPE, as well as legal actions that are intended to halt any other deliveries to Crimea and ensure that any equipment that has already been dispatched is returned to its original destination, Taman. Siemens also renewed its offer to buy back the equipment and annul the original contract.

Siemens also noted that its internal task force rigorously investigates all units and relevant partners in Russia. To prevent any shipping of equipment or rendering of services that could violate export control regulations, it stated, Siemens has also reviewed its relevant investments in, and licensing agreements with, Russian companies associated with the matter. In addition, Siemens is reviewing all potential collaboration between its subsidiaries and other entities around the world with regard to deliveries to Russia.

Siemens noted that it, at this point, is taking four decisive steps:

1. Siemens will fully divest its minority interest in the Russian company Interautomatika, which offers products and services for power-plant instrumentation and control systems.
2. Siemens has initiated the termination process of a license agreement with Russian companies in the area of equipment supply for combined-cycle power stations.
3. Siemens will halt power generation equipment deliveries from existing contracts to state-controlled customers in Russia for the time being. During that time, Siemens is implementing an additional controls regime that is exceeding legal requirements by far. This new, permanent mechanism is designed to ensure that potential future deliveries only get dispatched once Siemens has confirmed that the equipment can be installed at the final and contractually-agreed destination. This will include Siemens controlled delivery and installation on the foundation by Siemens personnel. New business engagements in gas turbine power generation equipment in Russia will be solely executed by its majority-owned SGTT joint venture and its wholly-owned subsidiary, OOO Siemens, Moscow. All new engagements would be subject to the new, permanent control mechanism.
4. In addition, the two employees representing Siemens on IA’s supervisory board will be exchanged or hold their office in abeyance, respectively, with immediate effect while Siemens conducts an investigation into the matter.

Siemens stresses that it is a reliable and responsible partner to its customers around the world and complies with all export control regulations. Based on the advanced state of ongoing investigations, it states, that Siemens has not uncovered any indications of possible violations of export control regulations. Nevertheless, Siemens said, it will again take immediate and decisive action if it discovers any further indications of such activities.

Dmitry Peskov, spokesman for the Russian Presidency, on Friday, declined to comment on the issue, saying that “This is a matter for the companies involved”, and that “dialog and cooperation will continue along those lines.”

CH/L – nsnbc – 22.07.2017



Source Article from https://nsnbc.me/2017/07/22/siemens-cuts-ties-with-russian-tate-companies-over-rerouting-of-gas-turbines-to-crimea/

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