You're reading: Siemens JV appeals against ruling to refuse injunctions in Crimean turbines case

LLC Siemens Gas Turbines Technologies (SGTT) has appealed against a ruling of the Moscow Arbitration Court to refuse injunctive relief in the case against LLC and OJSC VO Technopromexport, part of Rostec, court files said.

The appeal has been filed at Moscow’s Ninth Arbitration Appeals Court.

The Moscow Arbitration Court dismissed SGTT’s case against the two Rostec companies on January 10. The company also demanded injunctions in the form of a ban on the turbines being assembled in Crimea. The appeal is unrelated to the main lawsuit, the company said.

SGTT, owned 65 percent by Siemens and 35 percent by Power Machines, accuses the two Technopromexports of illegally moving four turbines to Crimea that were delivered by the claimant for the construction of a power plant in Taman. Under the sanctions regime, the German company has forbidden the use of its turbines to generate electricity in Crimea as the EU does not recognize Crimea as part of Russia.

The claimant is demanding the turbines be returned and the deal selling turbine be declared void. The claimant believes that Siemens was deceived. Technopromexport said that the German company is attempting to impose sanctions of foreign states on Russian territory and is not defending Russian law. Siemens is being threatened with fines from the EU due to the violation of sanctions. The contract was fully executed in Russia.

The power plant in Crimea should start operating in May-June 2018.

The EU placed additional sanctions on three Russian companies and three individuals in response to the transfer of the turbines to Crimea.

The Moscow Arbitration Court dismissed Siemens and SGTT’s lawsuit against Technopromexport in a similar case in December.

Siemens had previously announced that the installation of the equipment is damaging its value and requested intermediary measures, however, the court rejected these measures. The turbines are worth an estimated 150 million euros.