The German government is exploring other solutions in addition to expropriating Rosneft Deutschland as the majority owner of the Brandenburg oil refinery PCK. According to a report in the Handelsblatt newspaper on Thursday, the Federal Chancellery and the Federal Ministry of Finance have reservations about expropriation. The reason for this is the fear of Russian retaliation through the expropriation of German companies in Russia and high compensation claims, as the newspaper reported, citing government circles. This was confirmed to dpa by government sources, as was a meeting between representatives of the German government and the Russian side.
The Handelsblatt reported that there had been a meeting with Rosneft boss Igor Sechin in Istanbul a few days ago. According to sources close to the participants, it was discussed at the meeting that the nationalization would not be continued for the time being under certain conditions. Instead, the Russian side is to refrain from taking legal action against a further extension of the existing trusteeship. According to the newspaper, this would give the Russians time to find a buyer for Rosneft Deutschland.
A spokeswoman for the Federal Ministry of Economics declined to comment on the matter. The hearing on a possible expropriation is currently underway and will then be evaluated. Rosneft holds 54 percent of PCK in Schwedt, 24 percent of the Miro refinery in Karlsruhe and around 28.6 percent of Bayernoil, based in Neustadt an der Donau.
The Federal Ministry of Economics has been examining for several weeks whether Rosneft's shares in the three refineries should be expropriated. The federal government placed the Rosneft subsidiaries under trusteeship in September 2022 and thus brought them under its control. The aim was to secure the supply of fuel despite not using Russian oil due to the war in Ukraine. After being extended several times, the trusteeship expires on March 10.
In the dispute over the Russian state-owned company Rosneft's shares in German refineries, the supply of millions of consumers in eastern and southern Germany is at stake, according to the Federal Ministry of Economics. If the Brandenburg PCK refinery - where Rosneft is the majority shareholder - were to fail, there would be a monthly shortfall of 300,000 tons of diesel and heating oil in the greater Berlin and Brandenburg area, according to a report by the ministry to the energy committee in the Bundestag. A further 210,000 tons of diesel and heating oil per month would be missing if Rosneft Germany's shares in the Miro and Bayernoil refineries were to fail.
"It would not be possible to procure and transport these shortfalls at short notice," says the paper, which is dated Wednesday. "As a result, there would be a high risk of supply bottlenecks in eastern and southern Germany." Without state intervention, the operations of Rosneft Deutschland and its associated refineries Miro, Bayernoil and PCK would be impaired. Under Russian control of PCK, suppliers, customers, service providers and banks would withdraw, which could lead to the closure of operations, it is said. "As market forces cannot solve this problem, further state intervention is required."
A further temporary extension of the trusteeship would be possible. However, a long-term solution is necessary, explains the ministry. A hearing has therefore been initiated. However, this is not yet a decision on expropriation.
The deadline for the hearing expires on Friday (tomorrow). Brandenburg's Minister of Economic Affairs Jörg Steinbach had stated that he considered other solutions conceivable in addition to expropriation. It could not be ruled out that Rosneft would be interested in selling its shares of its own accord.
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