Economics Minister Habeck is convinced that the EU oil embargo is coming. That’s why he’s looking for alternatives to Russian oil for the PCK refinery in Brandenburg. And creates a handle to change the ownership structure.
A few months before the Russian war against Ukraine, Rosneft made a strategic decision. The Russian state-owned company bought further shares in the PCK refinery Schwedt via its subsidiary Rosneft Germany in order to take it over almost completely.
Economics Minister Robert Habeck (Greens) is now examining whether the deal can still be stopped. And he is looking for a lever to put the plant under state control in an extreme emergency. This would be possible with the reform of the Energy Security Act, which the Bundestag is voting on today.
Because the Russian owner, who has previously operated the plant with Russian oil from the Druzhba pipeline, is a huge stumbling block for Habeck on the way to an oil embargo against Moscow. The operator has no interest in turning away from Russian oil, says the Green politician. The federal government, on the other hand, wants to provide Schwedt with something else as soon as possible.
What does the amendment to the Energy Security Act provide for?
If there is a “concrete risk” that a company will not fulfill its tasks and security of supply is threatened, the reformed law can temporarily place it under trusteeship. In order to ensure security of supply, the possibility of expropriation is also created for companies in critical infrastructure as an “ultima ratio” – i.e. as a last resort. Furthermore, the possibility of price adjustments in the event of reduced gas imports is provided.
Why does Habeck need this novella?
Like hospitals, for example, the energy supply is part of the critical infrastructure. This means that it has a special meaning for everyday life – almost nothing works without it. But this is where private companies operate, which the state cannot simply access. Things get tricky when the Russian state gets involved in the German energy market with energy companies like Gazprom and Rosneft. Since Russia’s invasion of Ukraine, there have been growing concerns that the Kremlin could use it as a lever to jeopardize Germany’s energy supply.
Even the coalition partner FDP goes along with it. There is war in Europe, said the energy policy spokesman for the parliamentary group, Michael Kruse, of the dpa. “For us Free Democrats, this means that an instrument whose use we view very critically may have to be used here. Reality forces us to do this.” But there are clear guidelines for this, such as a later re-privatization.
Does the amendment only apply to Schwedt and Rosneft?
no The Federal Ministry of Economics explains that the law, which dates back to 1975, was due for reform anyway. “The project had been planned for a long time and is now being implemented. There is no connection with individual cases.” In addition, the reform also addresses other issues.
What is the ownership situation at PCK?
Rosneft holds the majority and intends to further expand it. By purchasing additional shares from co-owner Shell, Rosneft intends to take 91.67 percent control of the PCK refinery. The Federal Cartel Office examined this and approved it at the end of February. According to a spokesman for the authorities, there was “zero point zero scope for action” because the takeover was unproblematic in terms of competition law.
Habeck’s ministry is now examining the case from a different perspective in an investment review process under foreign trade law. The ministry says nothing about the status. For the time being, the previous ownership structure applies: Rosneft Deutschland GmbH holds 54.17 percent, Shell Deutschland GmbH 37.5 percent and Eni Deutschland GmbH 8.33 percent. Shell has made it clear that it did not want to sell its shares in PCK to Rosneft Germany, but to Alcmene of Austria. However, Rosneft exercised its contractually guaranteed right of first refusal.
What does the management of PCK want?
Rolf Schairer has been the new PCK Managing Director since April. The former head of the Karlsruhe mineral oil refinery Oberrhein was confident on Monday when Habeck visited Schwedt. «Will there be refineries that don’t survive? Yes, but not us,” he called out to his employees at a works meeting. “For this we need good management and above all we need you.” The PCK boss clearly distanced himself from the war in Russia: “We condemn this terrible war of aggression to the extreme. It is absolutely intolerable. And what the political decisions are, we go with it, »he said. «We do everything to ensure our continued existence and to supply the region, that is our task. We don’t show solidarity with these criminals at all.”
What plan does Habeck have for Schwedt?
During his visit to Schwedt, Habeck outlined the following plan: if Russian oil could no longer be imported, oil from other sources could be landed by ship in Rostock and brought to the PCK refinery by pipeline. The federal government could compensate for any additional costs for transport and procurement. And instead of Rosneft, a trustee could operate the facility. “If all three work, then you have job security for the near future,” promised Habeck to around 1,200 employees. He also said: “We need Schwedt.” Because the refinery supplies Berlin, Brandenburg and areas in Mecklenburg-Western Pomerania and western Poland with fuel. Habeck also held talks in Poland about possible oil from Danzig.
Would Rosneft participate in non-Russian oil wells?
The subsidiary Rosneft Germany is open. “Yes, we also process other oils,” says spokesman Burkhard Woelki of the dpa. “We have already processed other comparable crude oils at PCK in the past.” According to him, 60 percent of the comparable quality would be necessary to ensure the continued operation of the refinery – otherwise it would have to be converted. “We could supply 50 to 60 percent of PCK’s previous output via Rostock.” Rosneft Germany does not want to comment on the question of trusteeship or even expropriation. That is a matter for the German Parliament.
Can PCK be saved in this way and the supply secured in the East?
Energy expert Steffen Bukold says yes. In a study for the Zentrum Liberale Moderne, he also estimates that around 60 percent of the demand for crude oil in Schwedt can be covered via Rostock by pipeline. Partial quantities could be shipped to Schwedt from state oil reserves in Lower Saxony – this is also part of Habeck’s plan. Crude oil, which is shipped to Gdansk and brought to Schwedt via the Plock pipeline, could also be added. The refinery could continue to produce – whether under full load is an open question.
So that all gas stations in East Germany always have fuel and all planes at Berlin Airport BER kerosene, Bukold believes that the other refineries in Germany could be obliged to “also supply parts of East Germany”. However, transport costs and scarcity could increase prices regionally. The left warns of a fuel price of more than three euros per liter, even if the oil refinery in Schwedt is saved.