Germany nationalizes the subsidiary of the Russian oil giant Rosneft to guarantee energy supply

The German government on Friday nationalized the German subsidiary of Russian oil giant Rosneft, handing control of the refinery to PCK in Schwedt, a key source of fuel for Berlin, to the federal regulator.

"The threat to the security of energy supply is counteracted and a cornerstone is laid for the preservation and future of the Schwedt site," the German Ministry of Economy said in a statement.

The Schwedt refinery, which is landlocked, is Germany's fourth and supplies 90% of the capital's fuel, receiving all of Russia's crude through the Druzhba pipeline since the plant was built in the decade. from 1960.

The decision to take control of the refinery is accompanied by a "comprehensive package" aimed at guaranteeing the supply of oil to Schwedt through alternative routes, according to the ministry.

With the nationalization, the Federal Network Agency regulator also takes over Rosneft Deutschland's shares in the MiRo and Bayernoil refineries, in Karlsruhe and Vohburg respectively.

Chancellor Olaf Scholz, Economy Minister Robert Habeck and the Prime Minister of the state of Brandenburg will reveal the details of the package at 1:30 p.m., the ministry added.

Rosneft Deutschland accounts for about 12% of Germany's oil processing capacity and is one of the country's largest oil processing companies, the ministry said.

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The government's decision to place Rosneft Deutschland in the hands of the Federal Network Agency follows a similar move by Berlin with SEFE, formerly known as Gazprom Germania, which came under guardianship after Gazprom will leave it in April.

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