State of Brandenburg on Rosneft lawsuit: “No influence” on refinery in Schwedt

Status: 10/14/2022 12:55 p.m

The Russian oil company Rosneft has sued the federal government because its German branches have been put under trusteeship. This is not expected to have any direct consequences for the PCK refinery in Schwedt.

The German Economics Ministry has taken note of the lawsuit brought by the Russian state oil company Rosneft against the German government. Rosneft is thus defending itself against the trusteeship mandated by the federal government for its two German branches.

According to the Minister for Economic Affairs Robert Habeck, the requirements for a German trusteeship over the company have been met under the Energy Security Act. “The reason for this is the endangerment of the energy supply company and an imminent impairment of the security of supply,” the spokesman continued.

Brandenburg’s Economics Minister Jörg Steinbach (SPD) was not surprised by the lawsuit either: “The law provides for these legal remedies,” said Steinbach. “In this respect, that’s Rosneft’s right.”

No consequences for PCK refinery at this time

According to the Brandenburg state government, the lawsuit currently has no direct consequences for the PCK refinery in Schwedt. “Everything that has been set up by the federal government at the moment will not be affected until the final decision is made by the Federal Administrative Court,” said Steinbach. The lawsuit has no suspensive effect. She also has “no influence at all” on the supply.

A spokesman for Rosneft Germany confirmed this and added that the situation for the PCK refinery was relaxed despite the leak at the Druzhba pipeline in Poland. The impairment remained minor, and there was still enough crude oil in the tank farms. The spokesman said that the period of pipeline repairs, which should probably be done within ten days, can be bridged without any repercussions.

Under state control since September

In September, the federal government brought the majority owners of the Brandenburg refinery PCK – two Rosneft subsidiaries – under state control. This affects the refineries PCK, Miro in Karlsruhe and Bayernoil near Ingolstadt. The background is the plan for an oil embargo against Russia, which is to take effect from January 1st.

Because of the Russian attack on Ukraine, Germany has pledged at EU level not to use pipeline oil from Russia. The refinery is to be supplied via the ports of Rostock and Gdansk. The PCK refinery in Schwedt is supplied with Russian oil via the Druzhba pipeline. The north-east of Germany, including Berlin, is supplied with fuel via the plant on the Polish border.

Rosneft Attorneys: No Eligibility Requirements

Rosneft filed a lawsuit with the Federal Administrative Court against the Ministry of Economic Affairs on Thursday. The Berlin law firm Malmendier explained that the prerequisites for receivership were not met. The case differs fundamentally from that of the German subsidiary of the gas company Gazprom. “To date, Rosneft has fully met its crude oil delivery obligations, there have been no interruptions in delivery and no disruptions to performance,” argued the lawyers.

They also consider regulations in the German Energy Security Act to be unconstitutional: “Compulsory administration, combined with the authority to sell the shares in Rosneft’s German subsidiaries to third parties, and this without compensation, is constitutionally simply too much of a good thing.”

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