30 Dec 2019 17:41

Siemens could be eligible for SPIC to localize gas turbine production - minister

MOSCOW. Dec 30 (Interfax) - The regulatory framework for special investment contracts or SPIC 2.0 will be in place at the end of the end of Q1 2020, after which Siemens will be able to bid at a tender for the right to localize production of a large-capacity gas turbine in Russia, Industry and Trade Minister Denis Manturov told reporters.

"When at the end of Q1 the whole SPIC 2.0 framework is in place there may be a tender for 65-160 MW-compliant technology. Siemens could make a bid, but on the terms we have announced: the intellectual property must be owned by a Russian company, the Russian company must have that intellectual property at its disposal, but we must not have any external restrictions," he said.

The head of Siemens in Russia, Alexander Liberov told reporters in October that the company was holding negotiations with the Russian government on plans to continue working in Russia, and that it also expected new regulations to be issued under SPIC 2.0.

The Russian government in the summer issued a resolution that limits participation in the thermal power plant modernization program to manufacturers of gas turbines in which foreign equity ownership does not exceed 50%. Siemens' joint venture with Power Machines, Siemens Gas Turbine Technologies (SGTT) falls under this restriction, as the German company owns 65% of the venture.