The country’s economy ministry has put the Russian oil and gas company’s subsidiaries RN Refining & Marketing, and Rosneft Deutschland were put under fiduciary management of Germany’s Federal Network Agency
Germany takes control of Rosneft Deutschland. (Credit: ADIGUN AMPA on Unsplash)
Germany has taken control of Rosneft’s operations in the country, supporting the European Union (EU)’s commitment to eliminating Russian oil imports by this year-end.
According to the country’s economy ministry, the Russian oil and gas company’s subsidiaries RN Refining & Marketing and Rosneft Deutschland were put under fiduciary management.
Germany’s Federal Network Agency now assumes control of the Rosneft Deutschland’s refineries PCK Schwedt, MiRo in Karlsruhe, and Bayernoil in Vohburg.
Rosneft Deutschland accounts for nearly 12% of Germany’s oil processing capacity and is among the largest oil processing companies in the country.
The ministry, in a statement, said: “With the trusteeship, the threat to the security of energy supply is countered and an essential foundation stone is set for the preservation and future of the Schwedt site.
“The situation is tense and a further worsening of the situation cannot be ruled out. Gas supplies through Nord Stream 1 have not been resumed by Russia, allegedly because of faults at the Potovaya compressor station.”
PCK refinery, which supplies 90% of Berlin’s fuel, has been dependent on deliveries of Russian oil through the Druzhba pipeline.
After placing under trusteeship, the original owner will hold no authority to issue instructions, under section 17 of Germany’s Energy Security of Supply Act.
The move is said to mitigate the future risk to the country’s energy security and facilitates the maintenance and future of the Schwedt operation.
In addition, the decision also comes with a complete ‘future package’, to support the refinery with ensured oil supply through alternative routes, and welfare of the region.
Polish refiner PKN Orlen showed interest in buying a controlling stake in the Schwedt refinery, reported Reuters.
Shell, which owns a 37.5% stake in Schwedt, said it was unaffected by the move, reported Reuters.