Siemens AG (OTC: SIEGY) has captured a 370 million euros contract from Deutsche Bahn amidst reports of more turbines being shipped to Crimea. At the time of announcement SIEGY stock was down about 3%, mostly because of the reports of the company ignoring sanctions against Crimea, but a shift away from the troublesome in the next few days should see the ticker on the rise again.
Deutsche Bahn, a railway company with the Federal Republic of Germany its single stockholder, has agreed to buy 100 new freight locomotives from Siemens for an approximate figure of 370 million euros. While the deal pales in comparison to GE’s $2.6 billion contract in India back in 2015, it represents a good stepping stone for Siemens as it becomes more fully embroiled in Crimea. The shipment of two new gas turbines to Crimea is prohibited under the international sanctions, but reports have come out that two shapes that resemble Siemens’ turbines were seen at Feodosia. "Of course, this whole story is going to come out, but let it come out without us," a Crimean government official told Reuters. Should the delivery be confirmed it would potentially mean sanctions against one of Europe’s leading industrial manufacturers.