EU imposes sanctions over export of Siemens’ turbines to Crimea

The EU Council has imposed sanctions in response to the export of four Siemens’ gas turbines from Russia to Crimea – an export made by the end-user contrary to EU sanctions prohibiting EU firms from supplying the region with energy technology (4 August).

Three Russian individuals have been sanctioned, including Russia’s deputy energy minister, Andrey Cherezov, as well as Russian companies Technopromexport (‘TPE’), the company contracting with Siemens, and Interavtomatika, which installed the turbines in two new power plants in Crimea. Siemens currently holds a 46% stake in Interavtomatika.

The export of the gas turbines is contrary to Annex 1 to Regulation (EU) No 269/2014, which imposed restrictive measures in response to Russia’s annexation of the Crimea region in 2014, including a ban on the supply of equipment for infrastructure projects in Crimea and Sevastopol.

The Council commented in its Council Implementing Regulation (EU) 2017/1417 that the action ‘undermined the EU’s non-recognition policy of the illegal annexation of Crimea and Sevastopol’ and ‘supported their separation from Ukraine’, as the purpose of the power plants was to establish an independent power supply for Crimea and Sevastopol.

Siemens said in a statement that the transfer of its turbines to Crimea ‘constitutes a blatant breach of Siemens’ delivery contracts, trusts and EU regulations’, and is pursuing criminal charges against TPE. Siemens has also announced that it is divesting itself of the minority stake in Interavtomatika and is reviewing all of its collaborations with entities concerning the supply of goods to Russia.

Implementing Regulation (EU) 2017/1417 can be found here:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R1417&from=EN

Council Decision (CFSP) 2017/1418 can be found here:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017D1418&from=EN