Germany takes control of Russia-owned refinery

STORY: Germany has taken the local subsidiary of Russian oil giant Rosneft under state control.

The move on Friday (September 16) includes the PCK facility in Schwedt, a key fuel source for Berlin and beyond.

Rosneft Deutschland accounts for around 12% of German oil processing capacity.

It has tested Germany’s resolve to end Russian oil imports by the end of this year as part of European sanctions.

The economy ministry said the new decision enables the “preservation and future of the Schwedt site”, the country’s fourth-largest refinery.

The trusteeship is Germany’s latest move to support an energy industry reeling from the effects of the war in Ukraine.

Berlin said this week it would increase lending to energy firms which are at risk of being crushed by soaring gas prices after Russia cut supplies to Europe in response to sanctions.

The government has also put SEFE, formerly Gazprom Germania, under trusteeship.

German utility Uniper said on Wednesday (September 14) that the government may take a controlling stake, as an earlier 19 billion dollar rescue package was no longer enough.

Government sources had said before Friday's announcement that all Russian oil supplies could be halted.