Evidence of meeting #31 for Foreign Affairs and International Development in the 44th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was siemens.
A video is available from Parliament.
October 17th, 2022 / 4:10 p.m.
Managing Director, Siemens Energy Canada Limited
We also did not use a lobbying firm.
NDP
Heather McPherson NDP Edmonton Strathcona, AB
Thank you.
Right now, we're in a situation where we have a product that's not being used and that was repaired, to the detriment of our sanctions regime. It's not being used. Russia has now said it will not take that turbine. The Russians have made it very clear that they will not.
From your perspective, as a representative of Siemens, do you still believe the waiver was the right decision?
Managing Director, Siemens Energy Canada Limited
I want to go back to what I said earlier. It is not our decision. We cannot speculate on the future. We produce energy technology. We build products that provide electricity to people. It is not our decision to comment on. It's not up to us.
NDP
Heather McPherson NDP Edmonton Strathcona, AB
I'm trying to get around that difficulty.
Would there be any detriment to the Siemens company if those remaining five turbines were not, in fact, returned?
Managing Director, Siemens Energy Canada Limited
Compared to our annual revenue that we make at Siemens Energy Canada Limited, we're talking about a fraction of a per cent. It's not about money here.
NDP
Heather McPherson NDP Edmonton Strathcona, AB
For Siemens, what you would lose is a fraction of a per cent if you were not able to meet those contractual obligations that you had with Gazprom. Is that correct?
Managing Director, Siemens Energy Canada Limited
That's correct. It was the energy security topic that led us to alert the government and to file for this application so that politicians and the government could take that decision.
NDP
Heather McPherson NDP Edmonton Strathcona, AB
Have there been any decisions made with Siemens, Siemens U.K. and all the other arms to stop working with Gazprom? Has there been any discussion about ceasing that relationship completely?
Managing Director, Siemens Energy Canada Limited
Like I said, the turbine is not going anywhere. It's still sitting in Germany. The contract is technically on hold.
NDP
Heather McPherson NDP Edmonton Strathcona, AB
Is there any move to cancel the contract? “On hold” means it's ready to be started up again at the whim of Putin, one would think.
Managing Director, Siemens Energy Canada Limited
I'd like to add—it goes back to what I mentioned in my opening statement—that in August we announced an exit from all businesses in the Russian Federation. I think, as of yesterday, you could see in the news that we have ended a joint venture, for instance, that we still had with a Russian company around turbine maintenance. We continue to make progress there and exit our operations from Russia.
NDP
Managing Director, Siemens Energy Canada Limited
That's correct. The contract is still active.
Liberal
The Chair Liberal Ali Ehsassi
Thank you very much, Ms. McPherson.
Now we go to the second round of questions.
Mr. Hoback, you have five minutes, sir.
Conservative
Randy Hoback Conservative Prince Albert, SK
Thank you, Chair.
I want to thank the witness. It's always awkward to be here by yourself with lots of questions.
I'm new to the committee, so I'm just trying to figure it out.
The location of this turbine is Germany right now. When it's functioning and operating, would it be located in Russia, or would it be...?
Managing Director, Siemens Energy Canada Limited
That's correct. The final location would be a compression station in Russia.
Conservative
Randy Hoback Conservative Prince Albert, SK
Then why would you ship it to Germany? Why wouldn't you just ship it straight to Russia?
Managing Director, Siemens Energy Canada Limited
We followed the instructions that were given under the permit application.
Conservative
Randy Hoback Conservative Prince Albert, SK
Would it be the German government's request that you ship it to Germany, or would that be the Canadian government asking that you ship only to Germany?
Managing Director, Siemens Energy Canada Limited
We received the permit application from Global Affairs Canada. It's our understanding that it was the instruction from the Canadian government.
Conservative
Randy Hoback Conservative Prince Albert, SK
It was to go to Germany.
It's not fair to ask you, but one would assume that it would have been the German government instructing the Canadian government to ship it to Germany and not....
Conservative
Randy Hoback Conservative Prince Albert, SK
That's fair enough.
Give me a rough value of what these turbines are worth. What's the dollar value? Is it millions or hundreds of millions?