Siemens to change work with Russian customers after Crimean turbine dispute

Siemens CEO Joe Kaeser has told Germany's Spiegel in an interview that the German company plans to take "precautious" measures with regard to cooperation with Russian customers after the supply of Siemens turbines to a power plant in the occupied Crimea contrary to sanctions and without the consent of the manufacturer, according to the Russian news agency RBC.

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"In any case, our trust-based relations with Russia formed in more than 160 years have been spoilt," Kaeser said, stressing that this was "not a trivial offense," RBC reports.

"On the other hand, the entire country with its loyal and reliable customers cannot be subjected to universal condemnation," he said. In his opinion, The Siemens management "should think about hundreds and thousands of people working in factories who are losing their jobs" when the German company "reacts too sharply" to what had happened. "Therefore, caution is required," the CEO said.

However, Siemens has already "drawn conclusions," he noted. "We are already taking measures," Kaeser said, adding that one of such measures is the German company's exit from Siemens Gas Turbine Technologies LLC (SGTT), a joint venture of Siemens and Power Machines.

Read alsoNaftogaz CEO: Siemens stops gas compressor shipments because of Russia"In addition, we've vetted all our partners and licensees in Russia," the CEO said, noting that the relevant conclusions, among other things, refer to the concern's "internal control and ordering systems."

"In the future, we will retain the actual right to dispose of the equipment delivered to the customers until its final purpose is determined or it is connected to the grid," Kaeser said, stressing that a respective partner will also have to agree to such condition.

It became known in July after Reuters reports, which cited three sources familiar with the project, that Siemens turbines had been supplied to a power plant in Crimea in spite of sanctions.

The turbines in question were produced by St. Petersburg-based Siemens Gas Turbine Technologies LLC.

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