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Russian Officials Play Down Siemens Pullout

Siemens Press Service

Russian state-run companies can manage without Germany’s Siemens manufacturers, which recently suspended its cooperation with Russian partners over Crimea sanctions violations, a high-ranking Russian official said this week.

“There aren’t any critical problems [following from Siemens’ pullout] because several producers in the world make these types of products,” the state-funded RIA Novosti news agency quoted Deputy Prime Minister Arkady Dvorkovich as saying. “We are starting to produce many types of these products ourselves.”

Siemens announced its decision to suspend cooperation with Russian state companies this week, following reports that gas turbines it manufactured had been transported to Crimea in violation of the European Union sanctions.

Dvorkovich said Siemens had not suspended Russian deliveries entirely, only those to “state companies.”

On Monday, Russia’s Energy Minister Alexander Novak said the Siemens-made turbines could be replaced by similar equipment purchased from other manufacturers.

"We have a competitive market in the country. So what Siemens supplies can be delivered by other companies,” Reuters quoted Novak as saying. “As for electricity
generation, we have now learnt to produce the necessary equipment. We face no risks.”

Siemens announced it is pressing charges against the Russian contractor, Technopromexport.

The German company also said it is suspending deliveries of power generation equipment to Russian state companies, terminating a license agreement with Russian companies for the supply of equipment for power stations, and divesting a minority interest in the Russian company, Interautomatika.

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