Germany takes over Rosneft subsidiary to secure fuel supply – POLITICO


Germany has placed the national subsidiary of the Russian oil company Rosneft under state control to ensure the security of supply of a large refinery whose operations are expected to be disrupted by imminent European sanctions against Russian oil.

The challenges posed by Rosneft’s role in Germany’s energy system are increasingly pressing, and Berlin wants to ensure it can produce more refined fuel from imported crude from non-Russian sources. Russia’s Druzhba pipeline will soon be subject to EU sanctions on petroleum products from Russia, which are due to come into force in February 2023. A separate ban on imports of Russian oil by tanker will come into force in December.

The Schwedt refinery near Berlin, along with two others, will be placed under the aegis of the Federal Network Agency. Rosneft Germany is one of the largest oil processing companies in the country, accounting for around 12% of Germany’s total capacity, the economy ministry said in a statement.

The company will be placed under the “trust administration” of the state regulator, dealing with “the imminent threat to the security of energy supply”, the ministry said, adding that the move would secure the future of the PCK refinery. Rosneft Germany’s Schwedt, a major supply point that connects to the Druzhba pipeline from Russia and supplies most of the German capital’s fuel.

The ministers promised a “future comprehensive package that will boost the region’s transformation and support the refinery to secure oil supplies through alternative delivery routes”.

The MiRo refinery in Karlsrhue and the Bayernoil site in Vohburg will also come under state control.

Chancellor Olaf Scholz and Economy Minister Robert Habeck are expected to give more details of the plan later on Friday.

Antonia Zimmermann also contributed to the report.




POLITICO

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