German Ambassador to Russia: Investors in Russia concerned about scandal with Siemens turbines

The scandal surrounding Siemens turbines has heightened the concern of foreign investors in Russia, stated German Ambassador to Russia Rüdiger von Fritsch in an interview with the newspaper Kommersant.

“The anxiety and uncertainty among foreign investors in Russia has been exacerbated by the fact that even a company such as Siemens, which has been operating in the world for more than 160 years and has created 3,000 jobs here, cannot rely on written and oral promises,” said the ambassador.

The diplomat stressed that the basis of a successful business is reliable contracts.

“Much will be at stake if we can no longer rely on the fact that the terms of the contracts will be respected or that they can be enforced through the courts,” Fritsch explained.

On July 11, Siemens filed a suit against the state corporation Rostec. The German company has accused the public Foreign Economic Association company Technopromexport and the LLC Foreign Economic Association company Technopromexport of illegally moving four gas turbines that were intended for the construction of a power plant in Taman to the Crimea. In the suit, the German company is asking that the court recognize the deal on the delivery of the turbines as invalid. The Kremlin said that the turbines were produced in Russia.

Because of the scandal over the turbines, the European Union has introduced new sanctions against several Russian companies and individuals.

  Siemens turbines, Russia, investors in Russia