11:30 GMT +314 December 2019
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    An employee of German industrial giant Siemens works on a rotor at their Gas turbine plant on November 8, 2012 in Berlin

    Russian Court Rejects Siemens' Appeal to Seize 'Crimean Turbines'

    © AFP 2019 / JOHANNES EISELE
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    Russia and the German conglomerate are still trying to come to terms over the issue which emerged this summer after a Russian company had allegedly moved the Siemens-supplied turbines to the Crimea. According to Moscow, the turbines have been upgraded by a Russian company.

    MOSCOW (Sputnik) — Russia's Ninth Arbitration Appeals Court has upheld a lower court's ruling in the Siemens case, refusing to seize the turbines in Crimea, ban their installation, other use and alienation, according to a Sputnik correspondent reporting from the courtroom on Monday.

    The Moscow Arbitration Court reviewed a lawsuit filed by Siemens against the Technopromexport company, Rostec’s subsidiary, in which the German concern demanded that the deal to supply its turbines for the power plants being built in Crimea be invalidated. Siemens also demanded to oblige Technopromexport to return four turbines to the manufacturer — the Russian subsidiary of Siemens. 

    Siemens Turbines Scandal

    In July, Siemens learned that its four gas turbines provided for a project in southern Russia's Taman had been allegedly moved to the Crimea, where Russia was building two thermal plants. Following the incident, the company decided to annul a power plant supply license agreement and suspend power equipment deliveries to Russian state firms.

    Meanwhile, Russian Industry and Trade Minister Denis Manturov said that the new power plants in Crimea would be equipped with turbines manufactured in Russia and not with ones imported from the West. Commenting on the situation, Kremlin spokesman Dmitry Peskov said that all products used in Crimea were made in Russia.

    Russia's Technopromexport company, in its turn, said it had purchased turbines for Crimean power plants on the secondary market, with Russian engineering companies upgrading them. 

    As a result, the European Union added three Russian nationals and three companies involved in the turbines scandal to the sanctions list at Germany's request, with Moscow slamming the move as a violation of international norms.

    Related:

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    EU Sanctions Over Siemens Scandal Violate Int'l Law - Russian Energy Ministry
    Moscow Reserves Right to Respond to EU Sanctions Extension Over Siemens Scandal
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