Siemens divests from Russian power firm

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Siemens said in a statement that it had credible information suggesting that all four of the gas turbines it sold to Russian Federation have been transported to Crimea in breach of contract and global sanctions against Moscow.

Siemens, which owns 46 per cent of the joint venture, said the move was a breach of its contractual agreements and of European Union regulations.

That followed a report in the Sueddeutsche Zeitung newspaper that said Russian President Vladimir Putin gave the assurance personally to Germany's foreign minister, Sigmar Gabriel, in September.

The company announced having got valid information about the turbines illegally delivered to Crimea against sanctions.

It said it would now divest its minority stake in joint venture Interautomatika (IA), which sources have told Reuters was involved in the installation and commissioning of the turbines in Crimea, and suspend its two representatives on IA's supervisory board.

The German company said it would continue to pursue criminal charges "against the responsible individuals" at TPE. A Kremlin spokesman declined to comment Friday during a regular briefing with reporters.

Its business there has slowed in recent years as the Russian economy was hit by falling oil prices and the impact of sanctions.

Siemens' push into Russian Federation dates back to the days of founder Werner von Siemens, who in 1855 sent his brother Carl Heinrich over the border to help establish a telegraph network.

Russia will press ahead with plans to build two new power stations in Crimea, said Andrei Cherezov, a Russian deputy energy ministry, the RIA news agency reported.

"Siemens is implementing an additional controls regime that is exceeding legal requirements by far", it said.

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