PRESS: Siemens can buy stake in JV from Power Machines in 2021

MOSCOW, Nov 19 (PRIME) -- Siemens does not rule out buying the stake of Russia’s Power Machines in their joint venture (JV) Siemens Gas Turbines Technologies in 2021, President of Siemens in Russia Alexander Liberov told business daily Kommersant in an interview published on Tuesday.

“An agreement on a joint venture with Power Machines is in force now but we do not rule out using the right for a duel in 2021,” he said, referring to a mechanism where the firms have a priority right to buy stakes from each other. “We also do not rule out participation of Gazprom Energoholding as a potential partner. It is a strong player with state participation.”

He also said that statements by Power Machines can be qualified as a desire to break the joint venture agreement. “It is not a secret that Power Machines are proactively lobbying barriers against foreign producers. For instance, a call for not signing special investment agreements for local production of gas turbines. These (statements) harm the development of power machinery and in general worsen the investment climate for foreign investors,” Liberov said.

Siemens’s investment in production of gas turbines in Russia under a special investment deal stand at 1.3 billion rubles, he said.

The company has no plans to sell its stake in Siemens Gas Turbines Technologies, Liberov said.

(63.7542 rubles – U.S. $1)

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