Germany: Scandal with Siemens turbines in Crimea will lead to deterioration of Russian-German relations
The German government has said that Moscow's deception, bringing gas turbines made by the German company Siemens from Russia to the Crimea, despite its prohibition under EU sanctions and in violation of its contracts, will lead to further deterioration of relations between the two countries.
"Such a massive violation of sanctions will again burden German-Russian relations," the spokesman for the German Foreign Ministry told the German publication Bild am Sonntag.
It has been reported that Berlin reminded Moscow of the promise that Russian President Vladimir Putin once gave to former Minister of Economy and current German Foreign Minister, Sigmar Gabriel, that the turbines were designed for Russia and not for the Crimea.
The Chairman of the Board of the German-Russian foreign trade chamber, Matthias Schepp, stated earlier that the situation with the turbines of the German company Siemens in Russia was undermining trust in German-Russian business relations.
The German concern Siemens announced the termination of the supply of equipment to Russian companies controlled by the state, even under already existing contracts. According to a statement by the concern, Siemens adopted such a decision because of the transportation of gas turbines from Russia to the occupied territory of the Crimea, which bypassed sanctions.
Siemens has also introduced a new export control regime that is more stringent than sanctions require. Thus, all possible future deliveries to Russia will take place only after the concern is satisfied that the equipment will be installed at the destination specified in the contract, the statement said.
Siemens announced that it is starting the process of canceling its licensing agreements with Russian companies for thermal power plant equipment.
The fact that the turbines were illegally imported from Russia to the Crimea for use in power plants became known in early July 2017. After that, Siemens sued three Russian companies in Moscow for their likely involvement in this.
The Russian side claims that the turbines delivered to the Crimea are of Russian origin.
EU sanctions prohibit European companies from supplying any equipment and products, as well as services, in the Russian-annexed Crimea.