Sep 16 2022 8:12 p.m
The Federal Government places the crude oil importers Rosneft Germany (RDG) under trusteeship of the Federal Network Agency. Saxony’s Prime Minister believes that Russian oil cannot be replaced in the short term and accuses Berlin of putting ideology above Germany’s interests.
The Federal Government places the crude oil importers Rosneft Germany (RDG) and RN Refining & Marketing GmbH under trusteeship of the Federal Network Agency. This was announced by the Federal Ministry of Economics on Friday in Berlin.
The Federal Network Agency is thus taking control of Rosneft Germany and thus also of the respective shares in the three refineries PCK Schwedt, MiRo (Karlsruhe) and Bayernoil (Vohburg). The trust management will take effect this Friday and is initially limited to six months. The companies concerned have to bear the costs for this.
The background is the oil embargo against Russia imposed by the federal government because of the Ukraine war, which will take effect on January 1, 2023. According to the ministry, Rosneft Germany accounts for around twelve percent of Germany’s oil processing capacity, making it one of the largest oil processing companies in Germany.
The trust administration is a reaction to the “threatening threat to the security of the energy supply” and an “essential cornerstone” for the preservation of the Schwedt location. For Schwedt there should also be a “comprehensive package for the future” that should bring a “transformation push” for the region and support the refinery so that the supply of oil is secured via alternative delivery routes.
To date, the PCK refinery has been dependent on supplies of Russian crude oil via the Druzhba pipeline. The so-called future package is to be presented at noon in the Federal Chancellery by Chancellor Olaf Scholz (SPD), Federal Economics Minister Robert Habeck (Greens) and the Prime Minister of the State of Brandenburg, Dietmar Woidke (SPD). PCK has around 1,200 employees and is considered the economic pillar of the region around Schwedt. The refinery supplies large parts of north-eastern Germany with fuel.
According to the ministry, the German subsidiaries of the Russian state oil company Rosneft, RDG and RNRM, import crude oil worth several hundred million euros from Russia to Germany every month. The reason for the trust administration’s order was that the continuation of business operations at the affected refineries was in danger due to the anti-Russian sanctions. Central service providers such as suppliers, insurance companies, banks, IT companies and banks, but also customers, were no longer willing to work with Rosneft – neither with refineries with Rosneft shares nor with the German Rosneft subsidiaries, RDG and RNRM, themselves .
Saxony’s Prime Minister Michael Kretschmer sharply criticized the fiduciary takeover of the German Rosneft subsidiary MDR reported. The CDU politician said that was a clear wrong decision. German citizens and companies would have to pay dearly for this step. Germany will run into another shortage and further increasing prices at the gas stations.
Kretschmer also emphasized that it was perfectly clear that Russian oil could not be replaced in the short term. He accused the federal government of putting ideology above the interests of the country.