Officials announced on Friday that Germany is assuming management of three Russian-owned refineries in the country to maintain energy security before to the implementation of a ban on Russian oil next year.
Rosneft Deutschland GmbH and RN Refining & Marketing GmbH, two companies of the Russian oil giant Rosneft, will be placed under the administration of Germany’s Federal Network Agency, according to a statement from the economy ministry.
As a result, the agency will also handle the firms’ holdings in the east and south German refineries PCK Schwedt, MiRo, and Bayernoil.
German Chancellor Olaf Scholz stated, “This is a significant energy policy choice to safeguard our nation.” We have long understood that Russia is no longer a trustworthy energy provider.
Scholz stated, “With today’s decision, we are assuring Germany’s oil supply throughout the medium and long term.” This is especially true of the Schwedt refinery.
The factory supplies Berlin and much of northern Germany with petroleum products.
On May 4, 2022, in Schwedt, Germany, the facilities of the oil refinery on the industrial site of PCK-Raffinerie GmbH, which is jointly owned by Rosneft, are illuminated at night. The German government has announced that it will assume control of the German business of Russian oil giant Rosneft, citing the necessity to assure continuous operations at three oil refineries in the nation. Patrick Pleul/dpa via AP
Rosneft accounts for approximately 12% of Germany’s oil refining capacity and imports oil worth several hundred million euros per month, according to the ministry.
Initial plans called for the measure to last for six months in order to secure uninterrupted energy supplies.
Rosneft had previously stated that it had no plans to halt oil imports via the Druzhba pipeline, which runs from Russia via Ukraine to refineries in central Europe, despite the impending January 1, 2023 EU embargo.
Gas flows from Russia to Europe after the 05:52 shutdown.
Conversion to renewable energy
Scholz stated that a one-billion-euro (dollar) aid package would secure employment for approximately 1,200 individuals currently employed at the PCK refinery in Schwedt and assist with its long-term transformation as part of the transition to a green economy.
Economy Minister Robert Habeck stated that the refinery will in the future get oil through a pipeline from the port city of Rostock and via neighboring Poland, which had refused to give supplies as long as Rosneft could profit from them.
Russia halted gas deliveries to Europe through the Nord Stream 1 pipeline, which serves the majority of western Europe, on August 31, citing the need for two days of maintenance. The pipeline, which connects directly to Germany and distributes natural gas to much of Western Europe, remains closed.
The move has raised pressure on the largest economy on the continent as it prepares for a winter of energy restrictions that could pinch German consumers and businesses.