Russia’s Rosneft to sale assets in Germany

Reuters reported that Rosneft, the Russian oil giant, is initiating the sale of its assets in Germany. The German government stated that Rosneft aims to finalize this process by September, coinciding with the expiration of Berlin’s trusteeship over the assets.

Following Russia’s invasion of Ukraine, Berlin placed Rosneft’s assets in Germany, which include the primary PCK refinery in Berlin, under trusteeship in September 2022.

Since then, the trusteeship has been prolonged, and a legal attempt by Rosneft to contest Berlin’s ruling was unsuccessful last year.

According to a spokesperson from the German Ministry of Economy, Rosneft Russia has recently announced the initiation of a sales procedure with the aim of concluding it within the timeframe of an additional extension of the trusteeship. The ministry stated, “We will thoroughly examine this, including implementing further legal protections. Our paramount objective remains energy provision security, particularly safeguarding the operations of PCK Schwedt”.

After the Russian full-scale invasion of Ukraine in February 2022, relations between Russia and the West deteriorated. Germany, sensing energy overreliance on Moscow, has since implemented measures to bolster its energy security and independence.

The existing trusteeship over Rosneft’s assets in Germany will terminate on March 10, with a new trusteeship period set for additional six months.

Russian media have estimated the value of Rosneft’s assets in Germany to be approximately $7 billion.

Germany’s federal administrative court disclosed that Rosneft had halted its lawsuit against the trusteeship.

Berlin argues that if Russia were to regain control over these companies, the refineries’ operations could be jeopardized as contractual partners may refuse to cooperate.

Moscow has previously criticized the prospect of asset nationalization, asserting its intention to protect its interests.

Rosneft currently holds a 54.17% stake in the PCK Schwedt refinery. Shell had previously announced the sale of its 37.5% stake in the refinery, which is a major supplier of fuel to Germany.

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