Turkish subsidiary in Russia fails inspection, operations halted

ISTANBUL

Operations at Gersan R-Zao, a Turkish power-distribution equipment maker’s Russian subsidiary, have been halted for 60 days after it failed an environmental inspection, the company said in a written statement to the Public Disclosure Platform (KAP) on late Dec. 18. 

“After a control [inspection] in the production facility of Gersan R-Zao, 90 percent of which is owned by our company in the Kaliningrad Free Economic Zone, by the Kaliningrad Region Environmental Monitoring and Control Branch on Dec. 10, a decision has been made to halt operations in the facility for 60 days upon claims it failed environmental regulations without making any prior warning. The authority has also asked for the troubleshooting of the problems,” said the statement. 

The company also said the facility had the all legal investment approvals and the mentioned problems were fixed immediately. 

“In this vein, the required applications will be made on Dec. 21 to continue operations,” noted the company. 
The company also said the temporary stop in the facility’s operation will not have a big effect financially, as the facility provides some 6 percent of its net sales in the first nine months of the year.

Economic relations between Turkey and Russia have deteriorated since the downing of the Russian warplane in November.