German conglomerate Siemens has signed an agreement to build a combined cycle power plant in Tatarstan, Russia, which includes provisions of gas turbines.
This is reported to be the first major contract that will see Siemens supply gas turbines to Russia since a batch sent for Russian use earlier this year ended up in Kremlin-occupied Crimea.
Siemens on December 18 announced that it signed a €380 ($450 USD) million contract to build the power plant for synthetic rubber producer Nizhnekamskneftekhim, a daughter company of TAIF Group in Russia.
The German company will build the 495 megawatt gas and steam turbine power plant with Turkish company ENKA as a subcontractor. As part of the contract, Siemens will supply two SGT5-2000E gas turbines and one SST-600 steam turbine along with power distribution equipment.
The announcement comes days after the industrial manufacturer lost a lawsuit over Russia’s transportation of gas turbines to Crimea in the Moscow Arbitration Court.
Siemens attempted to reverse the deal after four gas turbines meant for Russia were found on the Ukrainian peninsula.
Russia’s actions were a breach of European Union (EU) sanctions, which were imposed after Moscow illegally annexed the Ukrainian peninsula in 2014.
Following the incident, Siemens announced it would, for the time being, stop sales of turbines to Russian state companies.
TAIF is a private company co-owned by Airat and Radik Shaimiev, sons of former Tatarstan president Mintimer Shaimiev, along with two billionaires.
The New York Times in July also reported that Siemens would only provide Russia with equipment that it could install itself.
Russian media group RBC this week reported that Siemens assured it will “retain full control over the supply and installation of the equipment” so that it can’t be shipped to Crimea again.
/By Natalie Vikhrov