Sanctions impact on Russian effort to complete Crimean power plant

Russia’s energy minister has told his parliament that the government has run into difficulty in building a gas-fired power plant in the Crimea.

Russian Energy Ministry Alexander Novak said, “Work is continuing despite problems related to the deliAlexander Novak - Russian energy minister (right)very of equipment from a Western company. We are working on buying other equipment.”

European Union sanctions bar European individuals and companies from providing energy technology to Crimea, which Russia annexed from Ukraine in 2014. The Black Sea peninsula has suffered electricity shortages since then.

The Russian government had expected that turbines for the Crimean plants would be made by Siemens Gas Turbine Technologies LLC, a joint venture in which Siemens has a 65 percent share. However the German company categorically denied it intended to send turbines to Crimea .

The joint venture’s factory is the only one in Russia capable of making turbines which will be compatible with the Crimean power plants.

Novak later told reporters Russia was considering various options, including sourcing equipment from other countries, using Russian machinery, or using foreign equipment on Russian territory that was imported before sanctions were introduced.

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