German technology giant Siemens agreed to recover the money to the contractual buyer for the turbines, illegally shipped to the Crimea, provided that the machinery is delivered back to the supplier. Back in summer 2017, the state-owned Tekhnopromexport bought four gas turbines from Siemens which should be used by a power plant in the Taman region in the south of Russia. However, the turbines were locally modified and illegally supplied into the annexed peninsular. Several commercial companies, their subsidiaries, and technology agencies are involved in the deal. The price stated in the final invoice is EUR 152.4 million.
Siemens fumes about the unlawful delivery as it violates the EU sanctions against Russia and specifically against the Crimea. EU manufacturers are banned from supplying such energy machinery to the peninsular. This condition is specified in the contract on the delivery of the turbines. In response, the German corporation has filed a lawsuit against its Russian customer. After the incident had been spotted by the EU authorities, Siemens had to leave the Russian market. “We all realize what it means if a court declares a deal void. Both parties will have to terminate it, reimbursing the money and sending back the machinery,” Siemens spokesman said. The German side insists they were misled when signing the contract, thus being unaware of the third party. Indeed, naïve Germans have a vague idea of loopholes in Russia’s business rules.
Eventually, the Arbitration Court in Moscow denied the lawsuit despite weighty arguments from Siemens. The Russian side stated that they are satisfied with the court ruling, considering it prudent and fair.
