Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.

Date: 30 April 2022 Author: Grzegorz Kuczyński

Germany Ready To Confiscate Rosneft Oil Assets

The biggest Russian oil company is unable to award a tender to sell oil while Germany has signaled a change of control at the country’s Schwedt oil refinery that is run by Rosneft. In a major shift in its stance, Germany says it is prepared to ditch Russian oil supplies. Its cooperation with Poland could be vital in this context.

SOURCE:pck.de

Russia’s biggest state oil producer Rosneft PJSC failed to award a tender to sell 5 million tons of crude, according to Bloomberg. No bids were placed from European companies, the traders said. Some Asian refiners submitted bids, but Rosneft deemed them too low. No Russian oil company has sold even a batch on the spot market since February 24. Once new sanctions are efficient in mid-May, any licensable activities are necessary for ensuring critical energy supply within the European Union. It was not clear, but the EU’s sixth package of sanctions contains an oil embargo––with some exemptions, though––no one in Europe is ready to make business with Sechin who is a close associate of Vladimir Putin. The German government approved amendments to the 1975 energy security law, allowing the expropriation of assets critical to the energy supply of the economy. Germany is preparing for a change of control at the PCK refinery in Schwedt operated by Russian state-owned Rosneft that supplies 90 percent of the gasoline consumed in Berlin and Brandenburg. The Rosneft refinery is the last in Germany to buy Russian oil, whose market share has fallen from 35 percent to 12 percent. Germany, which previously blocked the oil embargo against Russia, changed its position. Berlin will not veto such a decision within the EU, according to Robert Habeck, the German vice-chancellor and economy minister. “We have made a lot of progress on oil and we can join the embargo if it happens. Germany will not stand in the way of this,” Habeck added. What adds up to the German stance is cooperation between Germany and Poland. The authorities in Warsaw have signaled it will agree to having its infrastructure used to supply Schwedt if the German government confiscates the Rosneft-owned refinery.

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