A representative of Russian engineering company Technopromexport, a subsidiary of Rostec filed an application at the arbitration court of Moscow against German conglomerate AG and its two Russian subsidiaries for a fourfold reduction of the amount of claim, reported RIA Novosti.
“Now, Technopromexport, a minority shareholder of the company Interautomatika demands the recovery of about 46.8 million rubles [or 742 thousand dollars] and 1.4 million for Interautomatika. Initially, a suit was brought for 5.4 million euro and 177.1 million rubles [or about 2.8 million dollars]. Apart from Siemens AG, there were also Siemens LLC and Siemens Gas Turbines Technologies LLC,” the statement reads. The two companies are 65% owned by Siemens and 35% owned by Russian Power Machines.
It was reported in Juley 2017 that four Siemens gas turbines were delivered to Crimea for construction of thermal power stations. After that, the conglomerate stated that it stopped supplies of the equipment to Russian state-owned companies. The European Union introduced additional sanctions against Russia following this incident.
AG Siemens and its subsidiary, Siemens Gas Turbines Technologies LLC are suing two divisions of Rostec with the same name, OJSC Technopromexport and Technopromexport LLC for supplying the turbines to the Crimea.
Siemens claims that under the contract, the turbines were intended for another thermal power station in Russia and this contract explicitly excluded the possibility to move them from Russia to the Crimea as EU sanctions were imposed against the peninsula.
Russia stated that after one of Technopromexport companies resold turbines to another Technopromexport, these turbines were already considered to be “purchased in the secondary market” and restrictions of the contract did not apply to them.