Connect with us

Business

Germany to take over control of Russian-owned refinery

Published

on

Sharing buttons

The German government will extend its trusteeship over a major oil refinery that is majority owned by the Russian state oil company Rosneft for another six months, the German Economy Ministry confirmed to dpa on Friday.

The government plans to cite security interests in extending its control over Rosneft subsidiaries Rosneft Deutschland and RN Refining & Marketing, the ministry told dpa.

The PCK refinery, located in the eastern town of Schwedt on the border with Poland, supplies fuel to much of north-eastern Germany.

The trusteeship, which was scheduled to expire later this month, will now run through March 10, 2024.

Michael Kellner, a top official at the Economy Ministry, said that Germany has been in close touch with neighbouring Poland about measures to secure energy supplies.

“The site has been consolidated in recent months. There have been no supply bottlenecks whatsoever,” Kellner said.

He added that the government is devising a package to address the refinery’s future and secure jobs there.

The German government took control of the refinery in September 2022 amid stiff sanctions against Russian firms following Russia’s invasion of Ukraine.

The refinery was originally intended to handle imported Russian oil delivered by pipeline but has since been shifted to primarily refine oil imported from Kazakhstan brought in through Baltic Sea ports.

Rosneft unsuccessfully attempted to challenge the trusteeship in court

Sharing buttons