Germany Seizes Russian Oil Company Rosneft's German Unit, Stake in 3 Refineries
Germany seized the local unit of Russian oil giant Rosneft, Bloomberg reported. The move comes amid the German government's bid to take control of its energy industries and cut its energy dependence on Moscow. Germany is also in "advanced talks" to assume control of Uniper SE and two other large gas importers, Bloomberg said.
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“Over the next few months, we’ll have to continue to preserve critical infrastructure in order to achieve energy independence,” said Verena Hubertz, a lawmaker for German Chancellor Olaf Scholz’s Social Democrats. “Further measures will follow.” The move to take over Rosneft's German unit, including stakes in three oil refineries, also affects holdings in France, Italy and Austria, Bloomberg said.
The Scholz administration carried out the move after months of talks and in the run-up to Germany's goal of completely shutting down all purchases of Russian crude by year's end. Bloomberg said one of the crucial assets in the deal is the Schwedt refinery located near the Polish border, as it supplies Berlin and much of eastern Germany with fuel. The facility received its crude oil via the Druzhba pipeline from Russia, and the refinery is now gearing up from potential retaliation from Russia, including short-term restrictions in the supply of crude, operator PCK Raffinerie said, Bloomberg reported.
To compensate, Germany will look to upgrade a pipeline linking the refinery to the east German port of Rostock and supply more crude to the refinery via Poland. BNetzA, a grid regulator, will become the trustee of Rosneft Deutschland and RN Refining & Marketing, which make up around 12% of Germany's oil-processing capacity, Bloomberg said. The trusteeship runs through March 15 but could be renewed, and Rosneft can challenge the order in German courts. Germany took over the administration of the energy company via an order through the German Energy Safety Act.