At the risk of falling under sanctions, Rosatom enters Crimea
Rosatom admitted that it has become a supplier of equipment for thermal power plants that are being built in Crimea by Technopromexport, a member of Rostec, which increased the risk of Western sanctions against the state corporation, Kommersant reports.
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The publication notes that Rosatom, in its annual report for 2015, announced for the first time the presence of business interests in Crimea: in May, FSUE VNIIA (VNIIA Automation named after Dukhov, part of Rosatom) won the competition “for the supply of automated process control equipment to Sevastopol TPP (two units with a capacity of 235 MW) and Simferopol TPP (two units with a capacity of 235 MW).”
The publication recalls that since the end of 2014, Crimean energy projects have been risky for any suppliers, since they are subject to US and EU sanctions, and until today, most often only those Russian structures that were already included in the sanctions lists worked openly in Crimea and Sevastopol.
Lawyers consider Rosatom’s sanctions risks to be quite serious.
“Such activity is a risk, because the sanctions work like this: “Whoever works there is subject to sanctions,” commented the managing partner of Bartolius Bank, Yuliy Tai, on the situation.
“The question is whether the conditions that foreign states recognize as sanctions will be met, that is, whether the supply of equipment for thermal power plants will fall under them,” Yulia Galueva, head of the legal department of the National Legal Service, has a slightly different opinion, adding that if this activity is represent primarily a social project, that is, a chance that Rosatom will be able to avoid sanctions.
It is possible that Ukraine may also take drastic measures against Rosatom, the publication writes, citing its source in the Ministry of Energy of Ukraine, who said that Kyiv “intends to refuse to purchase Russian fuel for nuclear power plants, this option is being studied.”
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