Siemens delivers power turbines to Russian firm

17 March 2017

Germany's Siemens said on Thursday it had delivered four gas turbines for a power plant in southern Russia to power-plant builder Technopromexport.

"We have delivered the turbines to Technopromexport," said Nikolai Rotmistrov, head of energy and gas production at Siemens in Russia, adding that the contract stipulated the equipment should be used on Russia's Taman peninsula.

The sale of the turbines for a plant to be built on the Taman peninsula previously attracted attention in August when sources told Reuters that they could be transferred to power plants being built in the Russian-occupied Ukrainian territory of Crimea.

European Union sanctions bar European individuals and companies from providing energy technology to Crimea, annexed by Moscow from Ukraine in 2014.

Siemens has categorically denied that the equipment will be used in plants in Crimea. "Taman is part of the Russian Federation. We are not violating sanctions," said Rotmistrov.

Technopromexport said last year it planned to sell the turbines after a tender to build the Taman plant was cancelled after receiving no bids.

The company said in November a Russian joint venture owned by Siemens was delaying the delivery of some parts for the turbines.

On Thursday, it said some of the parts had still not been delivered, in breach of the contracts terms.

"Practically all conditions of the turbine supply contract have been fulfilled by Siemens. But part of the equipment is still being held in the Germany company's warehouses," the company said.