Enel Russia sues Siemens Gamesa for USD 383m - report

A unit of power producer Enel Russia has launched a RUB-22.9-billion (USD 383m/EUR 381m) lawsuit against wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE), Prime reports.

The Russian news agency says it has seen materials of the Arbitration Court of the Murmansk Region according to which Enel Rus Wind Kola accuses Siemens Gamesa of illegally refusing to supply equipment as part of an existing contract. The Enel Russia unit demands that the court make the wind turbine manufacturer redeem losses, Prime adds.

Enel Russia is still majority-owned by Enel SpA (BIT:ENEL) even as the Italian electric utility and major renewables player is trying to get rid of its interest in the Russian business in line with Western sanctions over Russia's invasion of Ukraine.

In June, Enel agreed the sale of its entire 56.43% stake in Enel Russia to local oil giant Lukoil (MCX:LKOH) and private fund Gazprombank-Frezia but the transaction was recently reported to be in a frozen state due to a presidential decree prohibiting Western investors from exiting local businesses in certain sectors by the end of the year.

In mid-2017, Enel Russia chose to partner with Siemens Gamesa for 291 MW of wind projects for which it was selected as the preferred bidder in a local renewable energy tender.

(RUB 10 = USD 0.168/EUR 0.167)

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