Turbine Siemens in the Crimea: as an industrial giant was able to organize the violation of EU sanctions

Still cases where German companies would violate European Union sanctions against Russia imposed over the annexation of Crimea, were recorded.

At least on the days it stated the authors of the Eastern Committee of German economy (Ost-Ausschuss der Deutschen Wirtschaft). However, perhaps there was a precedent.

These are the four gas turbines, which produced by joint venture “Siemens gas turbine technology” (65% in Siemens, 35% – in Russian “Power machines”), Technopromexport, a subsidiary of Russian state Corporation rostec.

About the delivery of these turbines on the annexed Peninsula, said the Agency Reuters.

Not deny and rostec, although calling DW about the origin of the aggregates , the press service of the concern was ignored. The gas turbine is designed for a new thermal power plant (TPP) in the Crimea, which should start its work in 2018.

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The construction began to compensate for the lack of electricity that plagues the Peninsula.

EU sanctions, introduced three years ago, banned the supply to Russia annexed the Peninsula of goods that can be used in particular in the energy sector.

As turbines fell in the Crimea

The first suspicion that the turbine produced by Siemens in circumvention of sanctions will go to the Crimea, was first performed two years ago.

The Russian newspaper “Vedomosti” and the German Frankfurter Allgemeine Zeitung then described by the following two-step scheme: turbine commissioned for thermal power plants in the Russian Taman Peninsula, separated from the Crimea by a dozen kilometers of the Strait, then crossing the sea to Sebastopol for local power plants. The question is, where can I get turbine for thermal power plants in the Crimea, remained open.

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Because of this, the project completion was delayed, as it was recognized the head of rostec Sergey Chemezov: “we Have to plan the end of 2017, but it is clear that we did not have time, so I think until mid-2018 complete construction. The delay associated with the turbines”. Given the fact that Russia today does not produce turbines with such capacity, the “sanctions of the product” was not enough.

“Tekhnopromexport”, according to his own statement, sought to acquire a similar gas turbine in the Iranian company Mapna, manufactured under license from the same Siemens.

However, for reasons of lack of “understanding on a number of technical and commercial issues,” he broke the contract.

Relatively delivered to the Crimea turbines, the contractor stated that he had purchased them “on the secondary market”, without specifying the company-counterparty.

In “assistance” also noted that “with the purpose of bringing the conditions and requirements of the project, which originally was laid” modernized “these plants by means of specialized Russian factories and engineering companies”.

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In most Siemens also admitted that their products could undergo technical processing in Russia, but were unable to answer whether there is a market for used turbines of this type.

Siemens considers himself a victim

The fate of the turbines after 2016 read a completely different version of the Russian customer and a German supplier.

The latest news on the website “Tekhnopromexport” dated November of 2016. In it, the daughter “of rostekh” accused “Siemens gas technologies” in default of contractual obligations.

The company has announced that it has begun preliminary examination of the actions of the contractor and admitted that the criminal proceedings may open up even against the management of the German conglomerate. Their actions Siemens explains that from September 2016 the group appeared reasonable grounds to believe that the Russian side intends to break the contract for the supply of turbines in the Taman.

“As soon as construction was frozen Taman TPP, we ceased all actions under the contract,” according to Siemens.

Criticism in the Munich headquarters considered unreasonable.

According to the representative of Siemens, the company “cannot proceed from the fact that each of our partners in Russia will break the Treaty, otherwise it would be impossible to do business”.

Tangled history with the service

It is most likely that in the Crimea were German units with no original parts that are not covered by the warranty.

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“Typically, these contracts stipulate that sends Siemens to install turbines of specialists provides the know-how, but we’re not doing that in the Crimea”, – assured in the group.

On the question of whether to operate the turbine without the technical support of the manufacturer, the headquarters of Siemens only shrug: it’s, like, how to predict the future of the car when there is a engine only. “It’s important for us to convey that we did not ignore the risk of getting our products to the Crimea, but actively opposed it and did everything possible,” said DW the representative of the group.

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In the contract between “Siemens gas turbine technology” and “Tekhnopromexport” as the only place of use is identified in TPP Taman, and also stipulates the prohibition of the supply of electricity to the Crimean Peninsula. However, the Agency Reuters, citing people familiar with the project sources said that there is another mark of Siemens in the construction of the Crimean power plants.

According to them, the Contracting company that will install the turbines at thermal power plants, became a Russian “Interavtomatika”. 45.7% of its stock is controlled by Siemens.

The representative of the German conglomerate on the corresponding request was objected to the involvement of the group.

In case of revealing involvement “of Interavtomatika” to build power plants in Crimea, the company has promised that it will take all necessary and possible measures for the early termination of such participation”.

What will happen to Siemens

Evidence that turbine that was in the Crimea, made by Siemens, not yet, but the concern come from the fact that there were units. That’s why Siemens has established a special working group for planning of further actions: “If our supply of turbines in the Crimea is confirmed, this would be a clear violation of the Treaty.”

The agreement provides for sanctions in case of violation of its terms, in the Munich headquarters said. Technopromexport, a subsidiary of rostec Sergey Chemezov, who is considered a friend of Russian President Vladimir Putin his days in the state security Committee (KGB), after the suspension of supplies on the German side threatened to ban Siemens to work on the Russian market.

German concert working in Russia for 160 years and believes this market is strategically important, although in recent years the group’s sales in Russia drops.

The question is not afraid to Siemens of falling foul of the Russian authorities, there answer: “we’ll See”. On the other hand, if it is confirmed that the German turbine was in the Crimea, it will be an indirect violation of the sanctions regime of the EU.

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The risk of falling between two fires and receive a fine from the authorities of Germany Siemens is assessed as negligible.

At the Munich headquarters of the concern say that, first, the prisoner with “Technopromexport” the contract does not fall under the sanctions restrictions.

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Second, Siemens, according to representatives of the company, all the while in close contact with the German authorities and cooperates fully with her. Lawyers specializing in matters of international sanctions, I believe that to prove the liability of Siemens for breach of EU restrictive measures will not be easy.

“We need to prove that the German company knew and deliberately allowed to violate the sanctions regime,” – said DW is a lawyer from Potsdam, Detloff Ingo (Ingo Dethloff).

Reuters interviewed experts assume that the company will be punished for such offense. However, the company “rostec” to be afraid, probably nothing. She is already in the list of companies against which the sanctions from the EU and the USA.