US sanctions prevent General Electric from servicing Russian power plants
Following the implementation of expanded U.S. sanctions on June 18, General Electric won't be able to continue servicing gas turbines in Russian power stations with a total capacity of 5 GW, according to Russian newspaper Kommersant.
The broadened U.S. sanctions prevent American companies from offering engineering services in Russia. Sources in Russia fear this could lead to a halt in original spare parts deliveries and foreign engineers refusing repair work. General Electric is currently assessing the potential impact of these trade restrictions.
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Kommersant's sources also indicated that U.S. companies would restrict access to technical schematics and databases – essential tools for foreign specialists conducting inspections and repairs on Russian soil. Others in the industry worry that GE may cease supplying original spare parts, which have no Russian equivalents.
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A similar situation occurred when Germany's Siemens voluntarily ceased providing services to clients in Russia. Currently, Russian companies are sourcing components for their turbines from allied nations.
GE confirmed it would no longer provide engineering services in Russia:
"We're conducting a comprehensive evaluation of the new U.S. sanctions package's impact on our operations in the region and are continuing our engagement with relevant authorities to ensure compliance with restrictions, regulations, and legislation," a company representative stated.
In August 2022, Siemens Energy reported that EU sanctions were having a notable impact on its business activities in Russia, enough to deem continued operations in the country as unviable. The company had planned to exit the Russian market within a quarter.
Following that, several Russian companies moved to buy Siemens out of its ventures in the country.
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