The federal government is examining the expropriation of Rosneft in Germany. The Russian oil company continues to hold a majority stake in the PCK refinery in Schwedt. The Kremlin is threatening countermeasures.
The Russian oil company Rosneft wants to use all legal means to combat a possible expropriation in Germany. At the same time, the Kremlin is threatening retaliatory measures if the federal government expropriates Rosneft as the majority owner of the Brandenburg oil refinery PCK in Schwedt.
“Such an expropriation would represent a measure that would remain unprecedented in the history of the Federal Republic of Germany and would forever harm investment security,” said Malmendier Legal, a law firm commissioned by Rosneft, today. “Rosneft, as a listed joint stock company, will take all measures to protect the rights of its shareholders.”
Kremlin spokesman Dmitry Peskov said no step would be ruled out to defend Russian interests when asked whether German assets in Russia could be confiscated in return. Peskov called the German considerations illegal and would undermine confidence in investment security in Europe.
Trusteeship expires in March
The Federal Ministry of Economics has invited Rosneft to a hearing about the possible nationalization of the group’s assets in Germany. The background is that the federal government’s trusteeship for Rosneft’s share in the refinery in Schwedt expires on March 10th.
The refinery is considered important, among other things, for supplying East Germany and the greater Berlin area. Rosneft actually holds the majority of the company at 54 percent. As a result of the Russian war of aggression against Ukraine, the federal government took over fiduciary control in September 2022. The legal requirements have now been created for the federal government to sell the Rosneft shares.
Habeck travels to Poland
“We continue to intensively support the supply of crude oil to the Schwedt site in discussions with partners,” said the Ministry of Economic Affairs. “This particularly includes discussions with companies from Poland and Kazakhstan.” Economics Minister Robert Habeck will travel to Poland next week.
According to the law firm Malmendier Legal, Rosneft was informed last Tuesday that an expropriation of Rosneft’s shares was being considered. The Ministry of Economic Affairs has informed Rosneft that if Russian control over the German Rosneft companies, the operation of the refineries would be at risk because contractual partners refused to cooperate with the Russian company.
Sales conversations last stuck
PCK Schwedt is the fourth largest refinery in Germany. Other shareholders besides Rosneft are the energy companies Shell with 37 percent and ENI with eight percent. In March, Rosneft filed a lawsuit against the trust administration in the Federal Administrative Court, but failed.
The government’s goal is to secure Rosneft Germany’s business operations reliably and in the long term. Recently, negotiations were underway with the Russian company to sell the company shares and thus clear the way for new investors. The Polish government is also pushing for this. Negotiations about a sale had recently stalled.