In response to Russia’s invasion of Ukraine, Danish turbine manufacturer Vestas plans to halt four Russian wind projects. Novoalekseevskaya, Grazhdanskaya, Ivanovskaya, and Pokrovskaya are the four projects now in the development phase. They have a total capacity of 253 MW. Vestas was selected for these projects by a partnership that included Gazprombank of Russia and Fortum of Finland. Since September 2021, the Danish firm is claimed to have been working on these four renewable energy projects.
Earlier this month, Vestas reportedly announced that it will cease all new commercial activities in Russia. The decision was made by the wind turbine manufacturer after the conflict caused difficulties in manufacturing, construction, and transportation. Vestas is also said to have denounced Russia’s military offensive in Ukraine. Many corporations, including Vestas, have declared tough actions in response to Russia’s armed invasion of Ukraine.
In October 2021, Empire Offshore Wind, a joint venture between Equinor and BP, appointed Vestas as its preferred wind turbine supplier for Empire Wind I and Empire Wind II, the 2.1 GW offshore wind project in New York. Vestas would deliver 138 V236-15MW wind turbine generators for the two Empire Wind projects. The turbine supply, service, and warranty contracts are contingent on Empire Offshore Wind LLC and NYSERDA reaching an agreement on contract terms and signing the Empire Wind II purchase and sales agreement.
REGlobal’s Views: This recent development from Vestas comes at a time when many corporates all over the world are reconsidering their business strategies in Russia. The military conflict is creating supply chain issues and delaying construction activities and there is also a strong public opinion regarding the Russia-Ukraine crisis.
