The PCK refinery in Schwedt, a crucial supplier of fuel for the city of Berlin, was taken over by Germany’s federal regulator on Friday after the Russian oil giant Rosneft’s German business was placed under trusteeship.
Rosneft Rosneft used to control a majority of Deutschland, which has put Germany’s vow to stop importing Russian oil by the end of the year to punish Moscow for its invasion of Ukraine to the test.
“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,” Germany’s economy ministry said in a statement.
According to the government, Rosneft Deutschland, one of the biggest oil processing firms in the nation, processes around 12% of all the oil produced in Germany.
Despite Chancellor Olaf Scholz and Russian President Vladimir Putin discussing the situation in Ukraine in a phone discussion on Tuesday, Friday’s action worsens already fragile relations with Russia.
Before the announcement, sources within the German government had warned that the decision to put Rosneft Deutschland under trusteeship would have to take into account the possibility of an immediate halt to Russian oil supplies.
Since it was created in the 1960s, the landlocked Schwedt refinery, which is Germany’s fourth-largest and provides 90% of the fuel for the capital, has only received its oil from Russia via the Druzhba pipeline.
Schwedt also supplies parts of western Poland and Berlin-Brandenburg Airport.
The government stated that the action taken on Friday is part of a “comprehensive package” meant to ensure that oil may be supplied to the refinery through several channels.
Uncertainty exists around a potential successor to Rosneft as refinery operator. The 37.5 percent shareholder in Schwedt, the British oil giant Shell, has long wanted to leave.
Verbio and Enertrag, both from the renewable energy sector, have expressed interest.
The Federal Network Agency regulator also assumes ownership of Rosneft Deutschland’s holdings in the MiRo and Bayernoil refineries, located in Karlsruhe and Vohburg, respectively, as part of the trusteeship.
At 11:30 GMT, specifics of the package will be presented by Chancellor Scholz, Economy Minister Robert Habeck, and the state premier of Brandenburg.
The government’s decision to give the Federal Network Agency control of Rosneft Deutschland comes after Berlin took a similar action with SEFE, formerly known as Gazprom Germania, which was placed under trusteeship after Gazprom abandoned it in April.
