UPDATE 1-Russian-US JV scraps plan to build large gas turbines in Russia

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This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.

(Adds GE statement)

MOSCOW, May 3 (Reuters) - A Russian-U.S. joint venture has said it has abandoned plans to build large-capacity gas turbines in Russia under licence from General Electric Co .

Russia has for years been trying to start manufacturing its own medium- and large-capacity gas turbines for power plants, or "localising."

The joint venture between GE and Russian state energy holding InterRAO had planned to produce both by 2025-26, making 90% of the components in Russia.

But GE suspended operations in Russia last year after Moscow sent its armed forces into Ukraine.

A GE spokesman said the company still had its JV with InterRao, "which is focused on providing civilian power for the people in the region".

GE, the spokesman said, still supported existing power services and was working with its Ukrainian partners "to keep the power running there, providing equipment and software for their utilities and servicing existing wind farms, whenever it is safe to do so."

"Like other companies, we believe providing access to electricity is a basic right," the spokesman said.

"We continue to service existing gas turbines where we can do so in compliance with sanctions while suspending all other operations."

The annual financial report from the joint venture, Russian Gas Turbines (RGT), said "external developments" had caused "significant changes to the format and extent of General Electric's involvement in joint projects to localise gas turbine production, with unfavourable consequences for the company".

In the report, RGT said a new localisation plan "does not include activities in relation to the GT13E2 Gas Turbine Unit Localisation facility".

RGT, in which InterRAO holds about 51%, had in 2020 bought the licensing rights from GE to manufacture both GE 6F.03 turbines producing 79-87 megawatts, and GT13E2 turbines with an output of 181-210 MW.

InterRAO had planned to invest up to 45 billion roubles ($570 million) in the joint venture.

As of March 31, GE had approximately $0.3 billion of remaining assets in Russia and Ukraine, mainly in the power business, in activity not restricted or subject to sanctions, GE said in its first-quarter report.

InterRAO has an option to buy GE's stake in the joint venture, but it is unclear whether it has been exercised.

The Russian holding, which last year bought Siemens Energy's turbine business in Russia, declined to comment. ($1 = 79.4205 roubles) (Reporting by Anastasia Lyrchikova; additional reporting by Alexander Marrow; Editing by Kevin Liffey, Ron Popeski and Sandra Maler)