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BERLIN: Germany seized control of a major Russian-owned oil refinery on Friday, risking retaliation from Moscow as Berlin strives to boost energy supplies and fulfill an EU commitment to eliminate Russian oil imports by the end of the year, according to Reuters.
The economy ministry said it is putting a unit of Russian oil company Rosneft under the trusteeship of the industry regulator and taking over the firm’s Schwedt refinery, which supplies 90 percent of Berlin’s fuel.
“With the trusteeship, the threat to the security of energy supply is countered and an important foundation stone is laid for the preservation and future of the Schwedt area,” the ministry said in a statement.
Governments across Europe have been scrambling to prop up their power suppliers and secure fuel supplies as they ramp up sanctions against major supplier Russia over its invasion of Ukraine.
Moscow has retaliated by reducing gas flows and has threatened to shut off all taps, sending prices soaring and raising the prospect of energy rationing in Europe this winter.
Rosneft Deutschland, which was majority-owned by the Russian oil group and accounts for about 12 percent of German oil processing capacity, will be placed under the trusteeship of the Federal Network Agency regulator.
The regulator said the original owner no longer had the authority to issue instructions.
Rosneft Deutschland and Rosneft did not immediately respond to requests for comment.
Polish refiner PKN Orlen is interested in taking a controlling stake in the Schwedt refinery, which is Germany’s fourth largest and also supplies parts of western Poland, sources in Berlin and Warsaw familiar with the matter told Reuters.
Shell, which owns a 37.5 percent stake in Schwedt, has wanted to sell it for some time. Shell said on Friday it was “unaffected” by the German move to take control of the refinery.
The Schwedt refinery has been a dilemma for Berlin for weeks, as it has been receiving all of its crude from Russia, but Germany is determined to eliminate imports of oil from Russia by the end of the year under EU sanctions.
However, taking over Schwedt risks retaliatory measures from Moscow.
Poland said earlier this year that ending Russian ownership of the refinery was a condition for potentially supplying it with seaborne oil via a terminal in Gdansk and via Polish pipelines to replace Russian crude.
Germany’s economy ministry said Friday’s move includes a package to ensure the refinery can receive oil from alternative routes, without giving details.
Chancellor Olaf Scholz, Economy Minister Robert Habeck and Brandenburg’s prime minister will announce more details at 1130 GMT.
Germany’s move on Rosneft Deutschland is the latest attempt to stabilize the energy market.
The government said this week it would step up lending to companies at risk of being crushed by soaring gas prices, and power company Uniper said the state could take a controlling stake, adding a state bailout worth 19 billion euros ($19 billion) was no longer enough.
The government has also placed SEFE, formerly known as Gazprom Germania, under trusteeship after Russian energy giant Gazprom dropped it in April.
Berlin is grappling with Russia’s move to stop the flow of gas through the Nord Stream 1 pipeline, which had been the main gas supply route powering Europe’s largest economy.
As a result of Friday’s decision, the Federal Network Agency will take over Rosneft Deutschland’s shares in the MiRo refinery in Karlsruhe and the Bayernoil refinery in Vohburg.