Germany takes management of three Russian-owned oil refineries

Germany is taking management of three Russian-owned refineries within the nation to make sure power safety earlier than an embargo on oil from Russia takes impact subsequent 12 months, officers mentioned Friday.

Two subsidiaries of Russian oil large Rosneft — Rosneft Deutschland GmbH and RN Refining & Advertising GmbH — might be put beneath the administration of Germany’s Federal Community Company, the economic system ministry mentioned in a press release.

In consequence, the company can even management the businesses’ shares within the refineries PCK Schwedt, MiRo and Bayernoil, positioned within the east and south of Germany.

“This can be a far-reaching power coverage determination to guard our nation,” German Chancellor Olaf Scholz mentioned. “We have lengthy recognized that Russia is not a dependable provider of power anymore.”

“With right this moment’s determination, we’re making certain that Germany is equipped with oil within the medium- and long-term as properly,” Scholz mentioned. “That’s significantly true for the Schwedt refinery.”

The power offers petroleum merchandise to a lot of northeastern Germany, together with Berlin.

The amenities of the oil refinery on the commercial web site of PCK-Raffinerie GmbH, collectively owned by Rosneft, are illuminated within the night in Schwedt, Germany, on Could 4, 2022. The German authorities says it’s taking management of Russian oil large Rosneft’s subsidiary in Germany, citing the necessity to guarantee continued operations at three oil refineries within the nation. 

Patrick Pleul/dpa through AP

Rosneft accounts for about 12% of Germany’s oil-refining capability, importing oil value a number of hundred million euros ({dollars}) each month, the ministry mentioned.

It mentioned the transfer would assist guarantee continued power provides and was initially as a result of final for six months.

Rosneft had beforehand made clear it had no intention to cease imports of oil through the Druzhba pipeline, which runs from Russia by way of Ukraine to refineries in central Europe, regardless of a looming EU embargo coming into power on January 1, 2023.

Gas flowing from Russia to Europe after shutdown


Transition to wash power

Scholz mentioned a 1-billion-euro (greenback) help package deal would safe jobs for about 1,200 folks at present working on the PCK refinery in Schwedt and assist with its long-term transformation as a part of the transition towards a inexperienced economic system.

Economic system Minister Robert Habeck mentioned the refinery would sooner or later obtain oil by way of a pipeline from the port metropolis of Rostock and through neighboring Poland, which had refused to supply provides so long as there was a threat that Rosneft may revenue from them.

Russia on August 31 stopped delivering gas to Europe by way of the Nord Stream 1 pipeline that provides a lot of western Europe, claiming a two-day shutoff was essential for upkeep work. The pipeline, which runs on to Germany and supplies much of Western Europe with pure fuel, stays shut.

The transfer has elevated strain on the continent’s largest economic system because it prepares for a winter of energy rationing that might squeeze households and German trade.

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