Germany puts Rosneft refinery subsidiary under state trusteeship

Germany puts Rosneft refinery subsidiary under state trusteeship

Germany on Friday placed the German subsidiary of Russian oil giant Rosneft under trusteeship, handing control of the Schwedt PCK refinery, a key source of fuel for Berlin, to the federal regulator.

The refinery, until now majority-owned by Rosneft, has tested Germany’s resolve to cut off oil imports from Russia by the end of the year under European sanctions to punish Moscow for its invasion of Ukraine.

“With the administration (of the subsidiary) the threat to the security of energy supply is counteracted and a cornerstone is laid for the preservation and future of the Schwedt site,” the Ministry of Economy said in a statement.

The Schwedt refinery, which is landlocked, is Germany’s fourth, supplying 90% of the capital’s fuel and receiving all of Russia’s crude through the Druzhba pipeline since the plant was built in the 1990s. 1960.

Friday’s move is accompanied by a “comprehensive package” aimed at guaranteeing oil supplies to Schwedt via alternative routes, according to the ministry.

With the change in administration, the Federal Network Agency also takes over Rosneft Deutschland’s shares in the MiRo and Bayernoil refineries, in Karlsruhe and Vohburg respectively.

Chancellor Olaf Scholz, Economy Minister Robert Habeck and Brandenburg state premier will reveal the details of the package at 1:30 p.m. local time (1130 GMT), the ministry added.

Rosneft Deutschland accounts for about 12% of Germany’s oil processing capacity and is one of the country’s largest oil processing companies, the ministry said.

The government’s move to place Rosneft Deutschland in the hands of the Federal Network Agency follows a similar move by Berlin with SEFE, formerly known as Gazprom Germania, which came under guardianship after Gazprom abandoned it in April.

Melissa Galbraith
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