“The court rejected Siemens in the return of the Crimean turbines

Siemens blamed the structure of “Rostec” illegal movement in the Crimea four turbine set for power plant construction in Taman


– The arbitration court of Moscow at the meeting on 14 December dismissed the lawsuit of German Siemens to JSC “VO “Tekhnopromexport” and JSC “VO “Technopromexport” (TPE, structure of “Rostec”) about the illegal, according to the plaintiff, move turbines in the Crimea, the correspondent of “Interfax” from a court.

In Russia05 Dec 2017Siemens accused “Technopromexport” deception in obtaining turbines for Crimecity read more

In addition, the court refused to “Technopromexport” in the counter claim against Siemens.

As reported, Siemens accuses two “Technopromexport” that they illegally moved to the Crimea four turbine set for power plant construction in Taman. Under the sanctions restrictions, the German company prohibits the use of their turbines for the production of electricity in the Crimea because the EU does not recognize the Russian status of Crimea.

The plaintiff demands to return the turbine and to admit of the sale of turbines invalid. According to the plaintiff, Siemens was deceived. Thus, in OOO “VO “Tekhnopromexport” I believe that the German company is trying to achieve on the territory of the Russian Federation of execution of the sanctions of foreign countries, and does not protect their civil rights. Due to violations of the sanctions Siemens face penalties from the EU. The contract in Russia was fulfilled.

The court had previously denied a German company in the issuance of an injunction against turbines in their arrest and stop the installation. Station in Crimea to begin work in may-June of 2018.

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In response to the movement of the turbines, the EU imposed against three Russian companies and three individuals for further sanctions.

At the same time claim to two TPE filed a joint venture of Siemens and “Power machines” – “Siemens gas turbine technology”, which has manufactured this equipment for Taman. SP also demands the return of the turbines. Siemens brought to the case as a third party, not declaring independent requirements.

In turn, the “Tehnopromeksport” filed a counterclaim to invalidate the clauses of the contract for the supply of turbines to the Crimea, concerning the limitations of their use and compliance. The items included a requirement not to perform the contract, if they violated the sanctions of the several States of the US, EU, UN, and including the sanctions to the Russian Federation. Paragraphs also contain provisions that determine where to ship the equipment. They also present a ban on the use of equipment in the Crimea. Another point tied the equipment to a specific site due to technical and climatic indicators.

At the same time representatives of “Technopromexport” indicated that the items were included in the Treaty at the insistence of Siemens. At the time of conclusion of the agreement between the two Russian sides – OOO “Siemens gas turbine technology” (joint venture “Power machines” fired turbines) and tekhnopromeksport – these conditions have already been negligible.

“We are required to comply with the law, and not the sanctions policy of other States”, – said the representative of JSC ” VO “Tekhnopromexport”.

Despite Thursday’s court decision, Siemens is still a chance to return the turbine: the second claim – “Siemens gas turbine technology” to “Tehnopromeksport” – will be discussed on 10 January. If it will be a positive decision and the contract will be declared null and void, the turbines can be returned.

During court proceedings on Thursday, the representative of “Technopromexport” reported that Siemens is not going to return the money. The representative of Siemens stated that while this issue was not raised. Explaining the essence of the issue after the court hearing, he said: “We are not saying that they are ready to return the money, we said that we understand the consequences of the claim”.

On Thursday, the Deputy Minister of energy Andrey Cherezov reported that two of the four disputed turbines have been installed in the Crimea. Two will be mounted to the end of the year.

Siemens has previously stated that the last installation of the equipment will lose its value and asked about interim measures for claims – but the court in that action denied. The turbine was estimated to be worth about 150 million euros.

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