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A firm part-owned by Germany's Siemens has been hired to help install electricity turbines in Crimea, a region subject to European Union sanctions barring EU firms from supplying it with energy technology, three sources close to the project told Reuters. Reuters exclusively reported earlier this week, 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 percent 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 license 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. The Siemens-made turbines are a vital component because they are the only ones that fit into the foundations already laid for the power plants, and Russian firms are not able to manufacture comparable equipment on their own.

Copyright Reuters, 2017

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