Germany Seizes Russian Energy Firm’s Subsidiaries


Berlin on Friday took control of the German operations of Russian oil firm, Rosneft, to secure energy supplies which have been disrupted after Moscow invaded Ukraine.

Rosneft’s German subsidiaries, which account for about 12 per cent of oil refining capacity in the country, were placed under trusteeship of the Federal Network Agency, the economy ministry said in a statement.

“The trust management will counter the threat to the security of energy supply,” it said.

Taking control of the Rosneft Deutschland is the latest move by Germany to shore up its energy industry, which is reeling from the effects of the war in Ukraine.

German government sources had said before Friday’s announcement that all Russian oil supplies could be halted.

The Schwedt refinery, Germany’s fourth-largest and the supplier of 90% of Berlin’s fuel, has received all its crude from Russia via the Druzhba pipeline since it was built in the 1960s. Parts of western Poland are also supplied by Schwedt.

The ministry said Friday’s move included a package to ensure the refinery could receive oil from alternative routes. It also means the Federal Network Agency takes Rosneft Deutschland’s shares in the MiRo refinery in Karlsruhe and Bayernoil refinery in Vohburg.

It is unclear who could step in to replace Rosneft as operator of the Schwedt refinery. Shell, which owns a 37.5 per cent stake in Schwedt, has wanted to withdraw for some time.

Verbio and Enertrag, both involved in renewables, have expressed interest.

Leave a reply

Your email address will not be published.