The European Union has imposed sanctions on three Russian individuals, including Deputy Energy Minister Andrey Cherezov, and three Russian companies, including two of Siemens’ contracting companies, in response to the delivery of Siemens’ gas turbines to Crimea in violation of EU sanctions.

Lexology reports that the Council of the European Union published Implementing Regulation (EU) 2017/1417, to amend Annex 1 to Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

Siemens halted deliveries of power generation equipment to state-controlled companies in Russia last month after it emerged that some of the turbines it sold to Russia were reportedly sent to Crimea.
Council of the European Union
The German company said it had received “credible information” that all four turbines delivered last summer for a power plant project in Russia’s south were “locally modified and illegally moved to Crimea.” This is a violation both of European sanctions and a contract with the company involved.

The European Union in 2014 imposed economic sanctions on Russia over the annexation of Ukraine’s Crimean Peninsula, including a ban on exporting power generation equipment to Crimea.

The Council stated that the imposition of sanctions on the three individuals and three companies is in response to the incident, which they said is a contravention of the EU’s prohibition of the supply of key equipment for the creation, acquisition or development of infrastructure projects in Crimea and Sevastopol.

The Council also highlighted that this action undermined the EU’s non-recognition policy of the illegal annexation of Crimea and Sevastopol and supported their separation from Ukraine, as the purpose of the power plants was to establish an independent power supply for Crimea and Sevastopol.