Siemens Energy continues winding down Russian assets, plans to complete process by end of year

MOSCOW. Nov 16 (Interfax) - Siemens Energy is continuing the process of restructuring its Russian assets, the company said in a financial report for the fourth quarter of the 2022 fiscal year from July to September.

Siemens Energy expects to complete the winding-down process by the end of 2022, and it should no longer substantially affect the energy group's financial performance.

Losses from the Russian business totaled 19 million euros in the fourth quarter.

Siemens Energy was established in 2020 by spinning off Siemens's energy division. Siemens was the largest shareholder with a 35% stake as at the end of November 2021.

Siemens Energy is one of the leading suppliers of energy equipment in Russia. The company owns Siemens Transformers and a 65% stake in Siemens Gas Turbine Technologies, a joint venture with Russia's Power Machines. Siemens Energy's subsidiary, Siemens Gamesa, was a partner of Enel Russia on renewable energy projects in Russia.

Siemens Energy this past summer reported that the European Union's sanctions had begun to affect the company's business activity substantially in Russia, and that they did not warrant continuing operations in the country.

PJSC Inter RAO in mid-October announced the purchase of Siemens Energy's 65% stake in the STGT LLC joint venture with Power Machines, which retains a 35% stake in the JV.

The Netherlands' RAO Intertech B.V., an Inter RAO entity, also assumed ownership of Siemens Energy's Voronezh plant, Voronezh Transformer LLC, formerly Siemens Energy Transformers LLC, part of the Siemens Energy division, with the corresponding changes entered in the Unified State Registry of Legal Entities (USRLE) on October 11. The enterprise's previous owner was Germany's Siemens Energy Global GmbH & Co. KG.

According to an Interfax source in the industry, both transactions totaled about 25 million euros.