Belarus Energy Ministry threatens to fine Siemens for failure to follow agreements

The Ministry of Energy of Belarus recently stated that the agency had not received information about the suspension of gear supplies from Siemens so far.

The people’s anti-crisis management recently reported that the Swedish Export Credit Agency (EKN) was freezing a deal with Belarus while further reviewing the situation. The Ministry of Energy responded to this information.

“Officially, the ministry has not received any information about the suspension of equipment supplies under the project to build peaking and reserve sources in Belarus,” reads the statement of the Ministry.

The ministry press service also reports that the day before, there was a working meeting with representatives of Siemens. The parties discussed the implementation of the project, including terms of equipment supply.

Last year Siemens Industrial Turbomachinery won tenders to supply equipment for construction of peak and reserve power sources at Byarezauskaya and Lukomlskaya power plant, Novopolotskaya CHP, and Minsk CHP 5. According to the agency, construction and installation works are currently underway at all the facilities.

The estimated cost of the project is about $500 million.

Under the contract, the Belarusian side has made advance payments, and some equipment has already been shipped. The Ministry of Energy is also threatening the Swedish company with penalties if failure to comply with the contract.