Siemens is set to sell its stake in its Russian joint venture over the Crimea scandal

 
Courtney Goldsmith
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Siemens is distancing itself from Russia (Source: Getty)

German engineering giant Siemens has said it will exit a joint venture with Russia over a Crimean sanctions scandal.

The firm announced it will sell its minority stake in the Russian company Interautomatika after it was informed by credible evidence that the company locally modified and illegally moved four gas turbines to Crimea.

Siemens, which owns 46 per cent of the joint venture, said the move was a breach of its contractual agreements and of EU regulations.

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It added that it had not uncovered any indication of violations of Crimean sanctions on its own part.

The company will also stop deliveries of power generation equipment to Russian state-controlled customers for the time being and review supplies to Russian subsidiaries, it said.

The EU has had sanctions against supplying energy equipment to Crimea since Russia annexed it in 2014.

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