Russia's TPE says Siemens declined to buy back turbines later sent to Crimea

FILE PHOTO: A still image taken from video footage shows blue tarpaulins covering equipment at the port of Feodosia, Crimea July 11, 2017. Video footage taken July 11, 2017. REUTERS/Staff/File Photo

MOSCOW (Reuters) - Russia delivered Siemens SIEGn.DE turbines to sanctions-hit Crimea after the German company declined to buy then back from Russia's Technopromexport (TPE), a TPE official said in statement.

The delivery of the Siemens turbines to Crimea, which was annexed by Russia from Ukraine in 2014, sparked a scandal because Crimea is subject to EU sanctions on energy equipment.

“In 2016, at the initiative of Technopromexport, Siemens was officially offered to buy back the turbines, an open tender was announced, but Siemens declined the offer,” TPE said. “The turbines were sold to a different company.”

“As of today, the turbines have been modernized and adjusted to meet the specific requirements of the (Crimean) project”, the TPE added.

The Crimean turbine scandal prompted Siemens to halt deliveries of power equipment to Russian state-controlled customers and reviewing supply deals.

The industrial group said it now had credible evidence that all four gas turbines it delivered a year ago for a project in southern Russia had been illegally moved to Crimea, confirming a series of Reuters reports.

Reporting by Anastasia Lyrchikova and Gleb Stolyarov; Writing by Dmitry Solovyov; Editing by Denis Pinchuk