German industrial giant Siemens says it will divest its share in Russian company Interautomatika and halt deliveries of power generation equipment to state-controlled companies in response to alleged sanctions violations by Moscow.
Siemens said it hasn't uncovered any indication that export-control regulations were violated in the matter.
"This development constitutes a blatant breach of Siemens' delivery contracts, trust and European Union regulations", Siemens said, adding that it would "take immediate and decisive action" if it discovered further indications that export control regulations had been violated.
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On Friday, Siemens announced that it had also terminated a licence granted to a Russian company to manufacture equipment for power plants.
Reuters said at the time the delivery might have taken place without Siemens' knowledge, which the company has since confirmed.
The German company said it would continue to pursue criminal charges "against the responsible individuals" at TPE.
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Its business there has slowed in recent years as the Russian economy was hit by falling oil prices and the impact of sanctions.
New gas power projects in Russian Federation would only be carried out through companies it controls, ensuring "Siemens-controlled delivery and installation" overseen by Siemens personnel, it added.
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Technopromexport, which is now building the new Crimean power plants, did not immediately respond to a request for comment on Friday.