The US has given the German government a six-month deadline to resolve the ownership of Rosneft's German subsidiary. In return, Rosneft Germany would be temporarily exempt from US sanctions. This comes amid new sanctions on Russian oil companies due to the war in Ukraine.
According to a Bloomberg report, the US government has given the German federal government a six-month deadline to settle the ownership of the German subsidiary of the Russian oil company Rosneft. Insiders familiar with the negotiations confirmed this to Bloomberg on Monday. Reuters reported constructive talks in Germany but provided no further details.
US President Donald Trump imposed sanctions on Russia's largest oil companies, Lukoil and Rosneft, on October 22 due to the war in Ukraine. The German Rosneft subsidiary is currently under trusteeship by the federal government, which took control of the shares—including the majority stake in the PCK refinery in Schwedt—after Russia's 2022 attack on Ukraine.
Since then, the government has been seeking a permanent solution to ensure supply security, particularly in eastern Germany. Expropriation is legally complicated, and the trusteeship has been extended multiple times. Eleven months ago, the Federal Ministry of Economics increased pressure on Rosneft to sell its stakes in the PCK refinery in Schwedt and other facilities.
The PCK refinery in Brandenburg's Schwedt is 54 percent owned by Rosneft's German subsidiaries and is crucial for gasoline supply in the greater Berlin area. Rosneft Germany accounts for twelve percent of Germany's crude oil processing capacity. The US government is considering a non-extendable, time-limited general license for the company to support state control and supply security.