A court in Moscow has rejected a plea by Siemens to seize gas turbines made by the company, which were sent to Crimea in violation of European Union sanctions.
The equipment, intended for sale in Russia, ended up in the annexed region, and Siemens called for a ban on their installation ahead of preliminary court hearings on September 18th. A Siemens spokesperson has told Power Engineering International that the court decision does not indicate the outcome of the main proceedings in the case.
The four turbines are required by Vladimir Putin for the region, as a result of a promise he made to ensure stability of power supply for residents. Prior to annexation Crimea had been powered by Ukrainian grid.
Sergei Aksyonov, head of the Kremlin-backed local government in Crimea, told Reuters on Sunday that the electrification of the peninsula was going ahead as planned. He did not elaborate.
When asked if foreign experts were still needed to launch electric power plants, Aksyonov said that Crimea did not need them "100 percent".
Meanwhile, Siemens spokesperson Wolfram Trost told Power Engineering International, “In the main proceedings, the court has admitted the lawsuit filed by Siemens AG to revoke the contract but has simultaneously refused to grant a preliminary injunction. This decision does not provide a basis for drawing any conclusions regarding the likelihood of success in the main proceedings.”
The violation of sanctions has prompted the EU to expand penalties against Russia. The new sanctions include Deputy Energy Minister Andrei Cherezov and three Russian companies.
Moscow has said the EU decision to expand sanctions is politically motivated and illegal.
The complaint was registered on July 11th when Siemens demanded from the court to recognize the deal as obsolete. The respondents in the case are Russia's Technopromexport and Siemens Gas Turbines Technologies, a joint venture of Siemens AG and Power Machines company.