Siemens Gas Turbine Technology

Company

Gas industry
Russia
North-West Federal District of the Russian Federation
Leningrad region
l. Siemens d.1

Siemens Gas Turbine Technology Limited Liability Company

Owners:
Siemens AG
Power machines
Inter RAO UES, PJSC - 65%

Content

2022: Inter RAO bought Siemens Energy's nergomachineering assets in the Russian Federation
2019
2018: Participants in the supply of Siemens gas turbines to Crimea are on the sanctions list
See also

Owners

+ Siemens AG (Siemens AG)

+ Alexey Alexandrovich Mordashov

+ Rosneft of the Tax Code

+ Ministry of Finance of the Russian Federation

+ Gazprom

+ Inter RAO

+ Federal Agency for State Property Management (Federal Property Management Agency)

+ Government of the Russian Federation

The area of activity is the production and maintenance of gas turbines with a capacity above 60 MW for the market of Russia and the CIS. The company is engaged in the development, assembly, sale and service of gas turbines, as well as the localization of production.

2022: Inter RAO bought Siemens Energy's nergomachineering assets in the Russian Federation

Inter RAO acquired Russian assets in the field of mechanical engineering, which previously belonged to the German concern Siemens, including 65% in a joint venture with Power Machines - Modern Gas Turbine Technologies LLC. The deal was announced on October 14, 2022. The remaining 35% of the enterprise remained with Power Machines.

It is noted that all the necessary permits were obtained for the transaction. By a decree of President Vladimir Putin of August 5, 2022, "special economic measures" were introduced in the country in the fuel and energy sector, and the withdrawal of foreign owners from domestic companies in the fuel and energy sector became possible only with the direct permission of the head of the country.

Inter RAO bought Siemens Energy's power engineering assets in the Russian Federation

As a representative of Inter RAO told Interfax, among the current goals of the acquisition is the organization of inspections of gas turbines of foreign production, which are now impossible due to the departure of specialists and companies.

The business of producing high-quality transformers adds synergy to our engineering assets acquired in 2021, as they are engaged, including the construction of power grid facilities (the former owner considered Voronezh transformers the best in the world among those that he produced). We will see the effect of the transactions a little later, but it must be emphasized that the demand for modern turbines and transformers will be huge in the near future, and service services are necessary for all energy companies that have installed foreign generating equipment, the company said in a commentary.

The deal is part of a restructuring of Siemens Energy's business, which the company announced on August 8, 2022 in its third-quarter report. According to the company's expectations, these events were supposed to be completed by the end of 2022. The report said that EU sanctions after July 10 began to have a significant impact on the company's business activity in the Russian Federation and do not justify the continuation of work in the country.^[1]

2019

A large-scale program of modernization of Russian power involves about 2 trillion rubles. investments in capacity renewal. Already at the very start, a competition began between the long-standing partners of Silmash Mordashov and German Siemens. For more than 20 years, the companies have been jointly producing turbines at the Siemens Gas Turbine Technology (STGT) joint venture. However, in 2018, Silmash came under American sanctions for the supply of turbines to Crimea, and Siemens avoided this. His, representatives said that they would allegedly be deceived into a "toxic" contract. At the end of 2019, using the support of the Ministry of Industry and Trade, Power Machines is trying not only to squeeze out its long-standing partners in the Russian market, but also to get foreign technologies.

The Ministry of Industry and Trade shares the position of Silmash and refuses to conclude special investment contracts (SPIKi) for new gas turbines with STGT. For the German side, which owns 65% in STGT, this would allow it to obtain Russian status for its turbines. These are the most important conditions for access to the modernization program, because only Russian-made turbines are subject to purchase. But officials report that several manufacturers at once declare their readiness to localize turbine production in the Russian Federation without additional measures. In fact, Siemens proposes to reduce the share in STGT below 50% and transfer all technologies to the plant. This is in addition to the mandatory 90% localization of production from 2022.

And if the localization and reduction of the share of STGT ownership is a solvable issue, then the transfer of technology can become a stumbling block. Of course, the German side can try to find an alternative partner among Russian manufacturers. However, there are few people left in Russia who want to compete with Silmash, which the only one of all has already actually received a state subsidy in the amount of 7 billion rubles. to create its own powerful gas turbine.

2018: Participants in the supply of Siemens gas turbines to Crimea are on the sanctions list

USA expanded at the beginning of 2018 the "Russian" sanctions list (SDN, Specially Designated Nationals List. - Kommersant"), including, in particular, companies and individuals involved in the supply of gas turbines to Crimea Siemens for projects for the construction of the Balaklava and Tauride TPPs (" anti-Crimean "restrictions of Western countries prohibit such supplies). This number includes all those who were included in their sanctions list back in 2017. European Union But^[2]company ""^[3]black list of the EU^[4] Alexey Mordashov Power machines it is its joint venture with Siemens that produces such turbines in the Russian Federation. However, lawyers believe that American sanctions will not interfere with the work of this joint venture, unless, after the United States, sanctions on Power Machines are imposed. Prior to Brussels that, only the EU introduced separate sanctions on the "turbine scandal."

American The SDN "black list" (persons with whom American companies and citizens are prohibited from doing business) includes the controlled "VO To Rostec Technopromexport LLC" (TPE), which is a contractor for TPPs in Crimea, its general director Sergei Topor-Gilka, as well as two officials - Ministry of Energy of the Russian federation Deputy Minister Andrei Cherezov (in particular, oversees the power of Crimea) and the head of the department of operational control in the electric power industry of the Ministry of Energy Yevgeny Grabchak. But the States added to the list one of the largest engineering companies in the Russian Federation - Power Machines LLC, the owner of Severstal Alexei Mordashov, to which EU sanctions do not apply.

Recall that the joint venture Power Machines and Siemens - Siemens Gas Turbine Technologies LLC (STGT) - produces high-capacity gas turbines under a German license in St. Petersburg, the Russian Federation does not have such its own technology. The turbines from the joint venture were bought by another Rostec structure of VO Technopromexport OJSC, they were intended for the TPP project in Taman (Krasnodar Territory), which has not yet started. Then TPE OJSC resold the turbines to the eponymous LLC (according to the official version, while the equipment was "finalized"), and already in 2017 the LLC transported them to Crimea. Siemens and its structures demand the return of equipment in Russian courts, but so far unsuccessfully (the last time the Germans were refused in January, and the court separately indicated in the decision that Western sanctions bans on the territory of the Russian Federation were unacceptable).