Industry on edge as Russia plots ban on foreign firms

The cost of building wind projects in Russia could significantly increase if state plans to allow only domestic companies to complete the design and installation works are approved.

Fortum and Rusnano install the first turbine at the Sulinskaya project in southwest Russia (pic: Rusnano)

According to analysts and local reports, foreign firms, like Enel, already developing sites in Russia will likely oppose the plans.

Meanwhile, some local companies may also be against the plans for fear of them causing additional costs.

Most of the local developers prefer to work with their foreign partners during building of their projects.

Novavind, a subsidiary of Russian state nuclear firm Rosatom, is working with Monsson Energostroy, a part of Romanian developer Monsson Operation, during the building of its wind farm in Adygea, southwest Russia.

Nanotechnology firm Rusnano has formed a joint venture with Finnish state-owned developer Fortum on a number of sites.

"This proposal was put forward by the Ministry of Industry and Trade and we hope it will be rejected by the government," said Russian Association of the Wind Industry (RAWI) chief, Igor Bryzgunov.

"The main reason is that it discriminates some market participants in relation to others and it worsens the investment climate in the country," he added.