Germany to extend trusteeship over Rosneft subsidiaries

BERLIN (Reuters) - Germany is set to extend its trusteeship over Russian oil company Rosneft's local subsidiaries for a fifth time for six months, the economy ministry said on Thursday.

Rosneft has been trying to sell its German units, which include a 54.17% stake in the PCK Schwedt refinery.

While remaining the legal owner, Rosneft was stripped of control after Berlin seized the entities following Russia's invasion of Ukraine in 2022.

"The federal government has decided to seek a further extension of the trust administration after March 10," a spokesperson for the economy ministry said in a statement.

"Ensuring security of supply remains the primary goal for all measures taken in connection with Rosneft Germany," the statement said.

Earlier, Bloomberg News reported the trusteeship would be extended to September.

A source familiar with the matter told Reuters last October that Rosneft was negotiating a sale of its German subsidiary to Qatar.

The ministry's statement said that Rosneft had issued assurances it is actively seeking a sale, which it aims to complete by the end of this year.

"In case that Rosneft does not manage to complete the sale on time, or if the cooperative path is unilaterally terminated, the federal government of course reserves other options," it said.

Rosneft's German activities include stakes in the MiRo and Bayernoil refineries, which are also under state trusteeship.

(Reporting by Gnaneshwar Rajan in Bengaluru and Markus Wacket in Berlin, writing by Vera Eckert in Frankfurt, editing by David Goodman and Elaine Hardcastle)