Siemens Expects Profit Down by Up to $237Mln in Russia Over Turbines Scandal

MOSCOW (Sputnik) — Answering journalists' questions at a press conference, Kaeser said that the company's annual revenue in Russia amounts to nearly 1.2 billion euros, while the lost profit would reach up to 200 million euros owing to the scandal around the delivery of its turbines to Crimea.

Kaeser noted that the company is following the situation and that there was "no reason to deviate what we communicated."

Earlier in the day, Siemens issued its financial results of the third quarter of 2016-2017 fiscal year, which stated that its net profit rose by 7 percent up to 1.5 billion euros. The basic earnings per share stands at 1.74 euros, compared to 1.64 euros from the previous year, according to the press release.

In early July, Siemens created a task force team to investigate reports about the alleged transfer of turbines produced by Siemens Gas Turbines Technologies, a joint venture with the Russian Power Machines company, to the Crimean peninsula. On Friday, the company said that all four of its turbines intended for a project in Taman were illegally delivered to Crimea.

Siemens decided to annul a power plant equipment supply license agreement and suspend power equipment supplies to Russian state firms to devise new control measures, while Berlin promised a corresponding response to the violation of the agreements.

On July 11, Russian Industry and Trade Minister Denis Manturov said that the new power plants in Crimea would be equipped with turbines manufactured in Russia and not with ones imported from the West. Commenting on the situation, Peskov said earlier that all products used in Crimea made in Russia.

Commenting on the issue, Russia's Technopromexport (TPE) company said it purchased turbines for Crimean power plants in the secondary market, with Russian engineering companies modernizing them.