U.S.-Russian JV cancels plan to build gas turbines in Russia under GE license
- August 31, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Oil & Gas, Sanctions & Regulation, United States
A Russian-U.S. joint venture called Russian Gas Turbines (RGT) has announced its decision to abandon plans for building gas turbines in Russia under a license from General Electric (GE). InterRAO, a state-controlled Russian energy holding company and one of the partners in the joint venture, stated that the move was due to the U.S. government’s ban on GE’s partnership continuation.
The joint venture was established as part of Russia’s efforts to domestically produce medium and large-capacity gas turbines for power plants. InterRAO, which owns around 51% of RGT, had acquired the rights from GE in 2020 to produce two turbine classes.
However, GE suspended its operations in Russia following Moscow’s military operation in Ukraine last year. While GE continued to provide essential medical equipment and support existing power services in the region, its activities related to the gas turbine venture were halted.
InterRAO’s CEO, Boris Kovalchuk, mentioned that the U.S. government’s ban on the partnership continuation with GE had led to the joint venture’s decision. He also stated that InterRAO now needs to discuss financial and corporate matters with the partners, including the option to buy out GE’s stake in the venture.
This development underscores how geopolitical tensions and sanctions can impact international business collaborations, especially in the energy and technology sectors. The joint venture’s decision to abandon the gas turbine project highlights the challenges posed by such geopolitical factors on technological and industrial initiatives.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Europe’s energy crisis eases as gas prices decline despite geopolitical tensions
Europe appears to be on a path to recovery from its recent energy crisis, as evidenced by a surprising decline in gas prices despite disruptions to tanker routes due to geopolitical tensions. Factors contributing to this positive trend include Europe’s record gas reserves accumulated in the…
Copper holds firm as the Iran War revives rate fears
Copper edged higher as traders weighed the demand outlook against the renewed hostilities between the United States and Iran, a modest 0.3 percent rise to 13,524 dollars a ton that conceals the deepening tension between the metal’s healthy long-term fundamentals and the macroeconomic storm the war’s reignition threatens to unleash.
The latest flare-up, with Iranian forces launching retaliatory drone and missile assaults on the American allies in the region and traffic through the Strait of Hormuz almost nonexistent on Monday, has revived the inflation-and-rates transmission channel through which the Gulf conflict reaches the industrial metals: higher energy costs stoking inflation, inflation forcing rate hikes, and higher borrowing costs hampering the manufacturers whose demand copper serves.
Bipartisan US senators introduce legislation to accelerate nuclear fusion development
A bipartisan group of U.S. senators, including Democrat Alex Padilla and Republican John Cornyn, introduced legislation on Thursday aimed at accelerating the development of power plants based on nuclear fusion reactions. Fusion technology, which seeks to replicate the process that powers the sun by merging…