Siemens Energy sells Russia-based gas turbine JV to local state firm (updated)

INTER RAO Lietuva AB

14/10/2022 16:24

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coverage of Russian military operations in Ukraine
    

  
 (Adds comments, details)
       FRANKFURT/MOSCOW, Oct 14 (Reuters) - Siemens Energy
 ENR1n.DE  has sold a 65% stake in a Russia-based gas turbine
joint venture to local state company InterRAO  IRAO.MM , in line
with its strategy to exit the country, the companies said on
Friday.
    No financial details were disclosed.
    The joint venture - OOO Siemens Gas Turbine Technologies
(SGTT) - is co-owned by Russian power equipment provider Power
Machines.
    Siemens Energy in August said it might sell or wind down its
Russian business and that it was in touch with public
authorities to work through the details.
    As well as the 65% stake in SGTT, InterRAO has taken control
of 100% of the Voronezh transformer plant, the company said in
the statement.
    According to the Russian company, it will use the plant to
ensure more gas turbine components are produced in Russia.
    Importing and maintaining equipment in Russia has became
much harder after Moscow sent tens of thousands of troops into
Ukraine on Feb. 24, and the West responded with unprecedented
sanctions.
    The deal could help to organise servicing of foreign–made
gas turbines, which has been hindered by foreign specialists and
companies leaving Russia, an InterRAO spokesperson said in
written comments.
    "The demand for modern turbines and transformers will be
huge in the near future, and maintenance services are necessary
for all energy companies, where foreign power equipment is
installed," the representative said. 
    The deal has been approved by the Russian government and
Russia's anti-monopoly watchdog, he added.   
    Russia accounted for a low single-digit percentage share of
Siemens Energy's total sales of 28.5 billion euros ($27.7
billion) in 2021, it said earlier this year.
    ($1 = 1.0273 euros)
 (Reporting by Alexander Huebner in Munich and Christoph Steitz
in Frankfurt, Anastasia Lyrchikova in Moscow; additional
reporting by Gleb Stolyarov; Editing by Miranda Murray and Mark
Potter)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))