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Germany Takes Control Of Russian-Owned Refinery Amid Energy Crisis
FRIDAY, SEPTEMBER 16, 2022
The German Subsidiary Of Russian Oil Giant Rosneft Was Placed Under Trusteeship On Friday, Giving Germany’s Federal Regulator Control Of The PCK Refinery In Schwedt, A Key Source Of Fuel For The City Of Berlin.
Rosneft Deutschland, which was previously majority owned by Rosneft, has tested Germany’s resolve to eliminate imports of oil from Russia by the end of the year under European sanctions to punish Moscow for its invasion of Ukraine.
“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 Robert Habeck said in a statement.
Rosneft Deutschland, which accounts for about 12% of German oil processing capacity, will fall under the trusteeship of the Federal Network Agency regulator, which said the original owner no longer had the authority to issue instructions.
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.
Germany said this week it would step up lending to energy firms at risk of being crushed by soaring gas prices after Russia cut supplies to Europe in retaliation for Western sanctions.