Giant Gazprom Awaits Explanations on Turbine Repair

Gazprom asks for an official confirmation from the EU on the repair and maintenance work of the Nord Stream pipelines. Jul. 29, 2022.

Published 29 July 2022

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According to Gazprom's CEO, the gas company still needs an answer about turbine reparation work.

Deputy CEO of the Russian gas holding, Vitaly Markelov, commented during an interview that the gas giant Gazprom needs official confirmation from the European Union and the United Kingdom on the permissibility of repair and maintenance of Nord Stream gas pipeline turbines regarding sanction restrictions.

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The top official said that there is a range of risks relative to sanctions imposed by the West, mainly as the UK-based Industrial Turbine Company Limited is the supplier under the contract and UK's sanctions are applicable for it, adding that in such case, the gas company has to consider it.

He also highlighted that the supply, transfer, sale, and export of turbine engines directly or indirectly for use in Russia are subject to the sanctions regulations imposed by the EU.

"For purposes of exclusion of described risks, formal clarification and authorization are required from authorities of the EU and the United Kingdom, which would allow overhaul and maintenance of all engines used in the Portovaya compressor station," said Markelov.

Nord Stream Turbine Supply Broke Contract - Gazprom Deputy Chairman

The deputy chairman of Gazprom’s board Vitaly Markelov has laid out why the supply of a Nord Stream turbine from Canada to Germany did not comply with the terms of contract. pic.twitter.com/lCJdhxfBFB
— Sotiris the Observer (@SotirisObserver) July 29, 2022

Gazprom CEO said that the delivery of the turbine for the Nord Stream gas pipeline after it was repaired in Canada and sent to Germany is not in correspondence with the contract, Markelov told. "We have to draw attention in this regard that the delivery of the gas turbine engine from Canada to Germany does not correspond to the terms of the contract."

"Permits issued by Canadian authorities do not take into account conditions of the existing contract and were issued to Siemens Energy Canada Limited, with which we have no contractual relations," the CEO added.