Since 2016, experts have repeatedly pointed to the illegal activities of the “Siemens” concern in the occupied Crimea. This primarily concerned key projects to militarize the peninsula, by building aggressors at the Balaklava and Tavriya thermal power plants with a total capacity of up to one gigawatt on which “Siemens” turbines were installed.
Next, in 2021, our Association initiated an investigation by the German authorities and the European Union into the supply of industrial pumps of joint production “Siemens” and “Grundfos” to the pumping station built by the occupiers Beshterek-Zuya water supply system.
The Association has repeatedly appealed to the UN, the Council of Europe and the European Union to raise sanctions against “Siemens”, and after the start of large-scale Russian aggression against Ukraine, we once again drew the attention of relevant structures and German authorities to this illegal activity of “Siemens”.
Thus, from February 2022, the concern was forced to prepare for a complete withdrawal from cooperation with the aggressor state, but did not do so publicly for two months. Initially, the supply of equipment to Russia and Belarus was suspended by “Siemens”, and then the maintenance of equipment was reduced.
In parallel, “Siemens” began to provide humanitarian aid to Ukraine, totaling several million euros. “Siemens” made the official announcement of the start of the procedure for the cessation of all commercial and production activities in Russia on May 12, at the same time as the publication of the financial statements for the first quarter of 2022.
On May 12, “Siemens” President Roland Bush also officially condemned Russia’s aggression and supported the international community in its call for peace. Earlier, on May 4, “Siemens” had already announced its losses from the imposition of sanctions on Russia by civilized countries, including Germany, totaling 600 million euros.
At the same time, the total industrial profit of the concern for this quarter amounted to 1.8 billion euros against 2 billion for the first quarter of 2021; net income for the quarter was at least 1.2 billion euros, and quarterly earnings per share decreased in the quarter, due to the decision to leave Russia, from 2.21 to 1.5 euros. It is noteworthy that in the future “Siemens” does not expect significant losses from the termination of cooperation with Russia.
Thus, the rupture of “Siemens`” long-term cooperation with the aggressor became a painful but not critical step for the company. This situation in the Crimean dimension will be reflected primarily in the energy sector, and for Russia itself, the concern’s exit will have catastrophic economic consequences, incomparable to the temporary losses suffered by “Siemens”.