From Hamburg to St. Petersburg
Crimean embargo: Hamburg charges for violation
March 27, 2024, 9:54 p.m
The EU has had an export ban in place since the Russian occupation of the Ukrainian Crimean peninsula ten years ago. The Hamburg public prosecutor’s office is now bringing charges against five former Siemens employees for an alleged violation of the embargo.
After more than six years of investigation, the Hamburg public prosecutor’s office has charged five suspects with allegations that they were involved in the illegal delivery of Siemens gas turbines to the Russian-occupied Ukrainian peninsula of Crimea. According to the public prosecutor’s office, no decision has yet been made regarding the opening of the main proceedings before a commercial criminal division of the Hamburg Regional Court.
Four Germans and one Swiss-French citizen are accused. The investigative authority announced this upon request. They are accused of violating the ban on the sale, export and delivery of certain goods, the so-called “Crimea embargo”, which the EU imposed in response to the annexation of Crimea. “Wirtschaftswoche” had previously reported.
The specific accusation
“The defendants are accused of being involved in various functions in the sale of four gas turbines to a Russian state-owned company and their transport to Crimea in breach of contract between 2015 and 2017,” said a spokeswoman for the authority. “The gas turbines are said to have been sold to the Russian company at a total price of more than 111 million euros and exported to St. Petersburg via the port of Hamburg between November 2015 and January 2016. In July 2017, representatives of the Russian state-owned company are said to have finally transported them by inland waterway to have been taken to Crimea.”
They are said to have known that the gas turbines were not intended for southern Russia, but for two new power plants in Crimea to supply electricity to the peninsula annexed by Russia in order to secure the energy supply there. However, according to the public prosecutor’s office, they concealed this as part of the approval process for the conclusion of the contract, the export and the shipment of the gas turbines.
“In addition, they are said to have failed to implement company-internal guidelines to ensure the final destination of the turbines in southern Russia,” it continued. “The aim of the accused is said to have been to profit indirectly through variable salary components from both the sale of the gas turbines and from a service contract that was promised for the gas turbines sold.”
Siemens sees itself as a victim of a Russian customer
A Siemens spokesman said all five defendants denied the allegations. At that time, the gas turbine division still belonged to Siemens AG, for which one of the defendants still works. With the spin-off from Siemens Energy, the division, which was operated in Russia together with the local Power Machines, ended up with the energy technology group. After the Russian attack on Ukraine, the joint venture was sold.
Siemens sees itself as a victim of its Russian customer TechnoPromExport in the affair. The spokesman for Siemens AG said that it was learned in 2016 and 2017 that several gas turbines destined for Taman in southern Russia were to be “transported to Crimea by the Russian contractual partner in violation of the contract and without Siemens’ knowledge or intention.” Siemens still tried to defend itself against this, but was unable to penetrate Russia. The public prosecutor’s office has also been informed about the events and will continue to support the authorities in the investigation. Siemens Energy said it had cooperated with investigators since gaining independence in 2020 and would continue to do so.
Crimea is part of Ukraine, but has been occupied by Russia since 2014. That’s why it is subject to sanctions; exporting there also violates the foreign trade law.