Siemens turbines arrive in southern Russia

23 March 2017, Week 11 Issue 852

German conglomerate Siemens has successfully shipped four gas turbines to Russian power plant builder Technopromexport for use at a new facility on Russia’s southern Taman Peninsula.

“We have delivered the turbines to Technopromexport,” the head of energy and gas production at Siemens Russia, Nikolay Rotmistrov, told Reuters on March 16. “Under the contract terms, Taman is the site for these turbines,” he added.

State-owned Technopromexport is planning to build a gas-fired power plant on the Taman Pensinsula, using the four turbines, which are valued at US$179.4 million. Each turbine has a capacity of 187 MW.

The equipment was bought by Technopromexport in March 2015 from a joint venture between Russian firm Power Machines and Siemens, which controls 65% of Siemens Gas Turbine Technology. Minority partner Power Machines is controlled by billionaire Russian industrialist Alexey Mordashov.

Technopromexport, which is a subsidiary of state-owned Russian technology group Rostec, confirmed receipt of the four turbines but said it was still awaiting some additional equipment. “Virtually all the terms of the contract for delivery of turbines to Taman by Siemens have been fulfilled but some of the equipment is still being held up in the warehouses of the German company in violation of contract terms,” the company told Ukrainian outlet UA Position last week.

The deal for the turbines was overshadowed by allegations from Technopromexport in November of last year that Siemens was deliberately delaying delivery of the turbines, slowing down construction of the Taman power plant. Siemens denied the claim, saying that it had complied with all export restrictions.

In August last year, Reuters quoted two unnamed sources as saying that Technopromexport was intending to transfer the turbines to power plants being built in Crimea, which was annexed by Russian forces in March 2014. The move would violate EU sanctions, which forbid European companies from selling technology for energy projects on the Russia-occupied peninsula.

“Taman is part of the Russian Federation,” Rotmistrov said last week. “We are not violating sanctions,” he added. Sergey Chemezov, the head of Rostec, said in February that owing to the sanctions, turbines needed for the construction of power plants in Crimea would be bought from suppliers in Iran. 

Joseph Murphy

Edited by

Joseph Murphy


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