The German government extends its control over Russian refineries

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The German government decided not to confiscate shares of the Russian state-owned company Rosneft in three German refineries at the present time.

The Ministry of Economy announced on Thursday that it had extended its guardianship for another six months.

The move aims for Rosneft to voluntarily sell its shares, especially the majority stake in the large BCK refinery, which is located in the eastern town of Schwedt on the border with Poland, and which supplies fuel to a large part of northeastern Germany.

Two German companies affiliated with Rosneft own a majority stake of 54% in the BCK refinery, and Rosneft also owns minority stakes in two other refineries in the states of Baden-Württemberg and Bavaria in southern Germany.

In total, the Russian group thus controls about 12% of Germany’s crude oil processing capacity.

The Ministry of Economy announced that “the German government decided to extend the guardianship again after the Russian owners announced their intention to sell their shares in the two companies affiliated with Rosneft during the extended period”.

The German Ministry of Economy added, “Sale will be the safest, legally, and fastest way to help pump investments into the refineries and thus secure the sites”.

The German government took control of the refinery in September 2022 amid sanctions imposed on Russian companies after the Russian-Ukrainian war.

The refinery was originally intended to handle imported Russian oil delivered via pipeline, but it has since shifted to refining oil imported from Kazakhstan, transported through Baltic Sea ports.

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