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Germany nationalizes Rosneft assets

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The refinery facilities at the PCK-Raffinerie GmbH industrial site, jointly owned by Rosneft, are lit up on the evening of May 4, 2022, in Schwedt, Germany. The German government said it was taking control of the German subsidiary of Russian oil giant Rosneft, citing the need to ensure the continued operation of the country’s three refineries. Rosneft Deutschland GmbH and RN Refining & Marketing GmbH will be placed under the control of Germany’s Federal Network Agency, the economy ministry said in a statement on Friday, September 16. (Patrick Pleul/dpa via AP, file)

BERLIN (AP) – Germany is taking control of the country’s three Russian-owned refineries to ensure energy security Oil embargo on Russia It will take effect next year, officials said Friday.

Two subsidiaries of Russian oil giant Rosneft – Rosneft Deutschland GmbH and RN Refining & Marketing GmbH – will be managed by Germany’s Federal Network Agency, the economy ministry said in a statement.

As a result, the agency will also control the companies’ stakes in refineries PCK Schwedt, MiRo and Bayernoil in eastern and southern Germany.

“This is a far-reaching Energy policy decided to protect our country,” said German Chancellor Olaf Schulz. “We have long known that Russia is no longer a reliable energy supplier. “

“With today’s decision, we ensure that Germany also has access to oil in the medium to long term,” Scholz said. “This is especially true for the Schwert refinery.”

The facility supplies petroleum products to much of northeastern Germany, including Berlin.

Rosneft accounts for about 12 percent of Germany’s refining capacity and imports hundreds of millions of euros (dollars) worth of oil each month, the ministry said.

It said the move would help ensure a continuous energy supply, initially for six months.

Rosneft has previously made it clear that it has no intention of stopping oil imports via the Druzhba pipeline from Russia through Ukraine to refineries in Central Europe, despite the imminent EU embargo coming into effect on January 1, 2023.

A 1 billion euro (dollar) aid package will provide jobs for about 1,200 employees currently working at the PCK refinery in Schwedt and contribute to its long-term transformation as part of the transition to a green economy, Scholz said.

Economy Minister Robert Harbeck said refineries would receive oil from the port city of Rostock and neighboring Poland in the future by pipeline, and Poland refused to supply supplies as long as there was a risk that Rosneft could profit from it.



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