Germany extends control over Rosneft's shares in key refinery, delaying expropriation

Deutsche Welle reports that the German arm of the Russian oil conglomerate Rosneft will remain under the fiduciary management of Germany for another six months. As the German newspaper clarifies, this decision means that the possible expropriation of the Russian company is delayed for the time being.

"The reason is that Rosneft indicated it is seriously interested in selling its shares in the refinery," the German Ministry of Economy informed on Thursday. It concerns a package of 54% of shares. According to unofficial information, Polish Orlen showed interest in investing in the refinery."

As detailed by money.pl, Rosneft Germany, a subsidiary of the Russian consortium, owns 37.5% of the shares. Thanks to another subsidiary, RN Refining & Marketing, the Russians have a controlling package. In total, the shares of Russian companies reach 54%.

In September 2022, the Berlin government ordered the shares of the Russian consortium to be transferred to provisional administration, with control taken over by the Ministry of Economy. The Russians are restricted, and all profits of the Russian shareholder remain under the federal government's care as a security measure.

However, provisional administration is different from nationalization. Moreover, the Russians have previously attempted to regain control over the facility. This could have led to a situation where Rosneft would regain influence over the German energy market. However, just before the governmental guardianship was due to expire, a court in Leipzig rejected Rosneft's complaint, giving Berlin more time.

The growing threat of expropriation prompted the Russians to consider selling their shares.

The PCK Schwedt refinery is critical for fuel supplies to the eastern part of Germany, including Berlin. After the cut-off of Russian oil supplies through the Druzhba pipeline, Poland has become the most important gateway for northern Germany.