Siemens Energy has sold a 65% stake in a Russia-based gas turbine joint venture to local state company InterRAO, in line with its strategy to exit the country, the companies said on Oct. 14.
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 organize 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 (US$27.7 billion) in 2021, it said earlier this year.
(US$1 = 1.0273 euros)
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