September 27, 2022

BERLIN (AP) – Germany is taking control of three Russian-owned refineries in the country to ensure energy security before sanctions on oil from Russia go into effect next year, officials said Friday.

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The economy ministry said in a statement that Rosneft Deutschland GmbH and RN Refining and Marketing GmbH would be placed under the administration of Germany’s Federal Network Agency. As a result, the agency will also control the companies’ shares in three refineries: PCK Schwedt, Miro and Bayernoil, located in the east and south of the country.

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The German Unipar takeover would be the first nationalization since 2008.

Rosneft owns about 12% of Germany’s refining capacity, importing several hundred million euros’ EURUSD,
+0.17%
The price of oil from Russia every month, the ministry said.

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The ministry said the move would help ensure continuous energy supply and was initially supposed to last for six months.

German Chancellor Olaf Scholz said the seizure of refineries became “inevitable” as it became increasingly clear that “Russia is no longer a reliable energy supplier,” Financial Times informed of,

Rosneft previously clarified that it had no intention of ending Russian oil imports, despite the EU embargo coming into force on January 1, 2023.

The ministry said a long-term plan would also be announced for the future of the PCK refinery in Schweidt, which employs about 12,000 people and provides petroleum products to much of Northeast Germany, including Berlin.

Marketwatch contributed.

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