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Siemens Reviewing Russia Business after Turbine Scandal

At least two of the gas turbines Siemens delivered to Russia were shipped to the annexed Crimean peninsula, which is in violation of the agreement and the sanctions. In spite of the customer’s assurance that the turbines would only be used in the South-Russian Taman, they were transported to a plant on the Crimean peninsula.

Siemens has filed a complaint with the Moscow court and has also announced that it would review all business with Russia, where Siemens generates sales in the amount of EUR 1.2 billion per year. In addition, Siemens demanded that the turbines be removed, or it would otherwise have to reverse the transaction.

Siemens is now having the transaction investigated by its own task force. It is to determine which partners in Russia organized the transport and whether additional turbines are being used on the peninsula. The prosecution in Munich is investigating whether Siemens employees violated the sanctions. The EU and the USA prohibit direct business contacts with the Crimea. Should the allegations that Siemens was involved be confirmed, this would have serious consequences for the electrics group.

 

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