The Borneo Post

Firm part-owned by Siemens hired to help install turbines in Crimea

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MOSCOW: A firm part- owned by Germany’s Siemens has been hired to help install electricit­y turbines in Crimea, a region subject to European Union ( EU) sanctions barring EU firms from supplying it with energy technology, three sources close to the project told Reuters.

Reuters exclusivel­y reported, citing sources with knowledge of the delivery, that Russia had delivered Siemens-made turbines to Crimea for use in two power plants under constructi­on there.

Siemens has denied it supplied any turbines to Crimea. In a statement issued on Friday, it said that if one of its customers had, in violation of the sales contract, re-routed any turbines to Crimea, the company “will not provide any deliveries or services for installati­on, commission­ing support, or warranty.”

However, the three sources said that one of the firms involved in the installati­on and commission­ing of the turbines in Crimea is Russian-registered ZAO Interautom­atika. Siemens has a 45.7 per cent stake in the firm, according to public records.

According to its website, the systems that Interautom­atika offers to clients “are based on the use of technology that is produced by Siemens, or under licence from Siemens.”

On Siemens’ Russian language website, Interautom­atika is described as a ‘Solution Partner’ to the German firm.

Asked about the involvemen­t of Interautom­atika in the Crimea power plants project, a Siemens spokesman said in a statement provided to Reuters: “Siemens stands by its earlier position that no gas-turbine warranty, installati­on and commission­ing support services will be provided.”

“We are investigat­ing the involvemen­t of Interautom­atika in the commission­ing of gas turbines and any other services and if proven true, we will take all necessary and available steps to terminate any activities as soon as possible.”

Technoprom­export, the Russian state- owned firm which is building the two power plants, declined to answer questions about the issue. Interautom­atika did not immediatel­y respond to Reuters questions.

Reuters has not been able to determine if Siemens knew of or approved of the delivery of the turbines, or the role of Interautom­atika in the power plant projects.

The turbines, and the role of Interautom­atika, expose the Germany company to potential accusation­s of insufficie­nt safeguards to ensure its equipment does not end up on territory most countries view as illegally annexed, some legal experts say.

In its statement on Friday, Siemens said it had no credible evidence about actual deliveries of its turbines to Crimea but had set up a task force to clarify the facts. It said it had taken all possible legal measures and would take operationa­l steps to prevent the equipment from being used unlawfully.

The Kremlin wants to get the two Crimean power plants up and running to fulfil a promise, made by President Vladimir Putin, to ensure a stable power supply for the region’s residents after it was annexed by Moscow from Ukraine in 2014. — Reuters

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