Germany’s Federal Network Agency placed Russian oil giant Rosneft’s German unit under trusteeship on Friday.
According to Reuters, this gives Germany’s federal regulator control of the PCK refinery in Schwedt.
Schwedt is Germany’s fourth-largest refinery, owned 54% by Russia’s national oil company, receiving oil through the Druzhba pipeline. It meets 90% of Berlin’s fuel requirements.
Rosneft Deutschland, which amounts to around 12% of German oil processing capacity, will be placed under the trusteeship of the Federal Network Agency. An agency statement said that the original owner no longer had the right to issue instructions.
According to a statement from the German Economy Ministry, Rosneft Deutschland GmbH and RN Refining & Marketing GmbH will also be administered by the agency. As a result, the agency will handle the firms’ shares in three refineries in three cities, Schwedt, Karlsruhe, and Vohnurg.
At a press conference in Berlin on Friday, German Finance Minister Robert Habeck will discuss the plans for Rosneft’s former assets.
The government also stated that it will announce a long-term strategy for the PCK refinery. The refinery employs approximately 12,000 people and supplies petroleum products to most of northeastern Germany, including Berlin.
Germany announced this week that it would increase lending to energy companies threatened by rising gas costs. These come after Russia reduced European supply in retaliation for Western sanctions.
“With the trusteeship, the threat to the security of energy supply is countered and an essential foundation stone is set for the preservation and future of the Schwedt site,” Germany’s economy ministry said in a statement.