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Siemens rethinks some Russian business after turbines moved to Crimea: source

Reuters  |  MUNICH, Germany 

MUNICH, (Reuters) - is rethinking some of its business connections in after two of its gas turbines turned up in Crimea, a region subject to sanctions on energy technology, a company source familiar with the matter told on Tuesday.

The German industrial group supplied the turbines for a project in but said on Monday that at least two of them had been moved to without its knowledge and against its will, confirming an exclusive report.

annexed the Black Sea peninsula from in 2014 in what the European Union considers a breach of international law.

"We have to think what this means for our relations to Russia," the company source said, asking not to be named because of the delicacy of the matter. "We can't simply go back to business as usual."

"One has to keep a cool head but act responsibly," the person said on Tuesday. "There must be a certain effect on particular connections."

The source declined to say whether this could affect Siemens' joint venture with Russian Power Machines, Gas Turbine Technologies LLC, which built the turbines that have ended up in

A spokesman for declined to comment.

Germany's ambassador said that will have seriously hurt its prospects for investment if it is confirmed that the Siemens-made turbines have been delivered to Crimea, Interfax agency reported.

said on Monday it would press criminal charges over the moving of its turbines from to Crimea, and would seek to have them returned to Taman, their original destination.

"insists categorically on full compliance with all export control restrictions for itself and also at its partners and customers. In addition, is evaluating what additional actions are possible," it said.

made about 1.2 billion euros ($1.4 billion) in sales in last year, roughly 2 percent of its total revenue. It is active primarily in energy and transportation and has said it indirectly employs 48,000 people in the country.

Chief Executive Joe Kaeser met President Vladimir Putin several times in his first year after becoming CEO in 2013, and attracted wide criticism for a visit just after Russia's 2014 annexation of

At the time, he reaffirmed his commitment to Russia, where has been present for almost 170 years and has invested about a billion euros ($1.14 billion) in the past decade, saying the relationship would not be sidetracked by "short-term turbulence".

($1 = 0.8780 euros)

(Reporting by Alexander Huebner; Writing by Georgina Prodhan; Editing by Sabine Wollrab and Philippa Fletcher)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 11 2017. 17:34 IST