Germany extends employment guarantee at Schwedt PCK refinery
Extension of Employment Guarantees and Ongoing Challenges at Schwedt PCK Refinery
BERLIN, May 11 (Reuters) - The German government has extended employment guarantees for staff of the PCK refinery in the eastern town of Schwedt by a further six months until the end of 2026, Economy Minister Katherina Reiche told Reuters on Monday.
Alternative Oil Supplies and Impact on Berlin
Germany is scrambling to find alternative oil supplies for PCK, which supplies most of the city of Berlin's fuel, after Russia stopped deliveries via the Druzhba pipeline this month, stripping the refinery of around 17% of its annual supplies.
Negotiations with Poland
Berlin has been in talks with Poland about possibly raising deliveries, saying capacity for Schwedt was secured at 80% for the month of May, down from 85% previously.
Government Measures to Stabilise Employment
"In order to further stabilise the site and provide employees with reliable prospects, the existing job protection arrangements at the PCK refinery will be extended by six months until the end of 2026," Reiche said.
Significance for Employees
She added it was an important signal to the more than 1,000 employees at the site, given the uncertain situation.
Ownership Structure and Legal Disputes
Schwedt has been an ongoing irritation for the German government because it is majority-owned by Russia's Rosneft even though the refinery has been brought under de facto control by the German government via a trusteeship model.
Rosneft's Legal Actions
Rosneft, which owns more than half of PCK Schwedt, recently filed a fresh lawsuit against the set-up.
Government and Regional Stakeholder Cooperation
Reiche said the government and regional stakeholders would work together to strengthen Schwedt as a business site.
(Reporting by Holger Hansen and Christoph Steitz, writing by Linda PasquiniEditing by Ludwig Burger)
