Shell Ends Negotiations to Sell Stake in Germany’s Schwedt Refinery to Unimot
Shell’s Attempted Sale of Schwedt Refinery Stake
Background and Timeline of Negotiations
Aug 27 (Reuters) - British oil major Shell has ended negotiations to sell its stake in Germany's Russia-linked Schwedt refinery to Polish energy group Unimot, Bloomberg News reported on Thursday, citing people familiar with the matter
• The sale discussions, which began in 2023, concluded months ago, the Bloomberg report said.
Responses from Involved Parties
• Shell declined to comment
• Unimot, which emerged as a possible buyer of Shell's 37.5% stake in Germany's PCK Schwedt refinery, did not immediately respond to a Reuters request for comment outside regular business hours.
Strategic Importance of Schwedt Refinery
• The refinery, majority-owned by Russia's Rosneft, has been a problem for the German government ever since Berlin ended energy ties with Moscow in response to Russia's invasion of Ukraine.
Government Intervention and Ownership Structure
• Germany put Rosneft's 54.17% stake under trusteeship, essentially giving the government control over the asset while technically leaving ownership in the Russian group's hands — a move that prompted Shell to revive its sale plans.
Conclusion of Negotiations
• According to Bloomberg, Shell and Unimot had been in advanced talks as of February, before ending talks.
Reporting and Editorial Credits
(Reporting by Sumedha Mukherjee in Bengaluru; Editing by Vijay Kishore and Joyjeet Das)