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    Siemens Offers Russia to Buy Back 4 Crimea-Delivered Turbines, Annul Contract

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    According to a statement issued by Siemens, the company offered its Russian counterpart to buy back the four turbines it had supplied.

    MOSCOW (Sputnik) — German conglomerate Siemens is offering its Russian counterpart to buy back the four turbines that it says have been illegally moved to Crimea and annul the delivery contract, Siemens said in a statement Friday.

    "Siemens also renewed its offer to buy back the equipment and annul the original contract," the company said.

    It claims to have received "credible information" that all four gas turbines delivered in mid-2016 to southern Russia's Taman "have since been locally modified and illegally moved to Crimea." This move, Siemens said, "constitutes a blatant breach of Siemens' delivery contracts, trust and EU regulations."

    "Siemens continues to pursue criminal charges against the responsible individuals at our 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," the conglomerate said.

    Siemens will also suspend power equipment supplies to Russian state firms to devise new control measures, the statement reads.

    "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," it said.

    The measure aims to ensure that future equipment movement takes place "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," the conglomerate said.

    At the same time, the company will annul a power plant equipment supply license agreement with Russian firms.

    "Siemens has initiated the termination process of a license agreement with Russian companies in the area of equipment supply for combined-cycle power stations," it said.

    Moreover, Siemens will exit its minority stake in the Russian power plant product and service joint venture Interautomatika AG, Siemens said in a statement. Friday.

    "Siemens will fully divest its minority interest in the Russian company Interautomatika, which offers products and services for power-plant instrumentation and control systems," it said.

    Last week, Siemens said it had received information from reliable sources that at least two of the four gas turbines, supplied for a project in southern Russia's Taman, had been moved to Crimea. The company said this development was a clear violation of supply contracts with Siemens, which ban the client from supplying equipment to Crimea.

    Related:

    Siemens Task Force to Look Into Media Reports About Turbines Supplies to Crimea
    Kremlin Reiterates Turbines in Crimea Made in Russia, Not by Germany's Siemens
    German Ministry to Examine Anti-Russian Sanctions' Violation in Siemens Case
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    turbines, Siemens, Germany, Russia
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