Court rejects Siemens, Rostec counterclaims on Crimean turbines

MOSCOW, Dec 14 (PRIME) -- The Moscow Arbitration Court has turned down mutual claims by Siemens and Russian state industrial corporation Rostec on the use of Siemens’ turbines on a plant in Crimea on Thursday.

Siemens said in July that all the four turbines meant to be used on a Russian power plant on the Taman Peninsula were illegally shipped to Crimea, forcing it to cancel its licensing agreements to sell power equipment to Russian firms and suspend the current agreements with state-run companies. Later Siemens’ Russian affiliate filed a claim against state industrial corporation Rostec’s companies seeking to void a delivery contract.

In a counter-claim, Rostec’s two affiliates, JSC Technopromexport and LLC Technopromexport, demanded voiding three stipulations in the contract, prohibiting turbine placement in Crimea.

A Siemens representative said that the company is ready to refund the turbines if they are sent back. “We all know for sure what deal voidance means. Both sides must return everything they received, we are ready for that.”

The sum of the deal with Siemens is unknown. According to earlier reports, JSC Technopromexport resold the equipment to LLC Technopromexport for 152.4 million euros.

The Siemens official also said that the turbines meant to be installed on the Taman Peninsula are unsuitable for the climate of Crimea.

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