The tender for the construction of electricity supply facilities in the annexed Crimea was disrupted because of the companies’ fear of sanctions, according to Reuters.
It is noted that a number of foreign companies, including Russian subsidiaries of Fortum, Enel and E.ON, had planned to attend the tender. However, the risks to fall under sanctions forced them to turn the tender down, so it did not take place.
Reuters informed that, foreign companies were invited to the tender to supply equipment for the power plant in the Krasnodar region. As it turned out, this power plant would in addition provide the annexed Crimea with electricity. The document of 2014 issued by the Ministry of Energy of Russia indicates that, despite the primary need of the Krasnodar region for power plant, ‘the station could supply electricity to the Crimea if necessary.’
- From a political point of view this is an extremely risky project. The financial benefits simply do not justify this kind of risks –according to representative of a company with an eye for tender.
As a result, none of the companies dared to take the risk and get under sanctions. Trades were declared invalid.
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