Power equipment makers notify generating cos of delivery delays due to sanctions

MOSCOW. March 23 (Interfax) - Power equipment manufacturers have notified Russian power companies that due to sanctions they will be forced to reschedule deliveries of equipment for projects to modernize thermal power plants, the Council of Energy Producers reported.

Furthermore, the significant increase in prices for metals, construction equipment and power equipment in 2021 has continued this year due to the imposition of sanctions against Russia, changes in supply changes and the doubling of the Central Bank's key interest rate to 20% from 9.5%, the Council, which includes the largest power companies in Russia, said.

The Russian government is drafting changes to legislation that will make it possible to revise deadlines for completing energy projects that are facing problems due to restrictions on equipment supplies to Russia, Deputy Prime Minister Alexander Novak said earlier, adding that this refers to government powers to extend these deadlines and waive fines for delays in the launch of "certain facilities."

Projects to modernize thermal power plants in Russia are being carried out under capacity supply agreements that guarantee investors a return but set strict deadlines for launching facilities with fines for missing them.

Key foreign players on the Russian power equipment market such as Siemens, Siemens Gamesa, Vestas and GE announced earlier that they are suspending work on new projects in Russia.