The German authorities have decided to take control of all the assets of the Russian state company Rosneft. We are talking about three oil refineries (refineries), whose load has fallen due to a decrease in Russian oil supplies via the Druzhba pipeline. The decision of the German authorities is stated in the message of the Ministry of Economics.
The assets of the Russian company are taken into trust management in accordance with the law on energy security. Rosneft Deutschland GmbH (RDG) and RN Refining & Marketing GmbH (RNRM) came under federal control, which in turn have stakes in three refineries: PCK Raffinerie (Schwedt), MiRo (Karlsruhe) and Bayernoil (Vogburg). These plants account for about 12% of all oil refining capacities in Germany, and Rosneft itself, until recently, occupied a leading position in the German market.
“The trust management will help counter the growing threat to energy supply security and lays an important foundation for Schwedt's continued and future location. The decision will contribute to the transformation of the region in the future and will support refineries to ensure oil supplies from alternative sources,” the ministry said in a statement.
In addition to the need to ensure the energy security of the region, the authorities note that due to Western sanctions, other economic actors (insurance and IT companies, banks, etc.) cannot continue to work with Rosneft divisions. This creates additional risks for the regions in which the Russian company has been represented, and for the German economy as a whole.
Before the war, Rosneft ranked third in the German oil refining market, processing 12.8 million tons of oil per year. In February 2022, Rosneft was supposed to increase its assets in Germany, the company agreed to buy a stake in the PCK Raffinerie refinery in Schwedt from Shell and bring the refinery's ownership to 91.67%. The company even managed to get the consent of the regulatory authorities, but because of the war, the deal was not closed. The refinery in Schwedt accounted for the bulk of Rosneft's refining capacity in the country; the plant processed 11.6 million tons of oil products annually.
The German authorities have previously taken similar measures against Gazprom's assets in the country. Bloomberg noted that German Chancellor Olaf Scholz opposes the nationalization of assets, so they are transferred to trust management in connection with the energy crisis in the country.