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Germany needs ‘political solution’ to Russian oil refinery
Global Banking & Finance Review®
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By Joseph Nasr
BERLIN (Reuters) -Economy Minister Robert Habeck appeared to suggest on Wednesday that Germany could take control of a refinery run by Russian state-owned firm Rosneft to avoid shortages once an EU ban on imports from Russia goes into effect.
The PCK refinery in Schwedt accounts for almost all of Germany’s remaining Russian oil, which stand at 12% of total imports.
“The refinery in Schwedt is the challenge,” Habeck told reporters during a news conference in Meseberg outside Berlin, where government ministers discussed Russia’s invasion of Ukraine during a two-day retreat.
“It refines Russian oil and belongs to Rosneft. We must find a political solution to this problem.”
Habeck did not expand on what he meant by a political solution. In the past he has said the government was preparing for a change of control at the refinery, and he has declined to rule out expropriation.
He said that a proposal by the EU Commission to phase out Russian oil imports in six months gave Germany ample time to find alternative supplies for Schwedt.
German lawmakers are debating legal amendments proposed by the government that allow the expropriation of energy companies to secure continuous energy supplies during a crisis.
Habeck has previously said Germany didn’t expect Rosneft to agree to refine non-Russian oil in Schwedt in the event of an embargo.
Russia’s Rosneft holds 54.17% in the refinery, while Shell still owns 37.5% after Germany put under review a planned purchase of that stake by Rosneft. Italy’s ENI holds 8.33%.
(Editing by Rachel More and Miranda Murray)
A refinery is an industrial facility where crude oil is processed and transformed into useful products like gasoline, diesel, and other petrochemicals.
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