PCK Schwedt, a German oil refinery, is seeking €400m ($441m) in government aid from the country’s economy ministry to upgrade the Rostock-Schwedt pipeline, reported Reuters.
PCK chief Ralf Schairer informed about the financial aid during a meeting of a task force, which was established to ensure the refinery’s future in the wake of the war between Russia and Ukraine.
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German authorities took over operational control of the refinery after Russia invaded Ukraine.
Rosneft, a Russian energy company, owns the majority 54% of PCK Schwedt.
The oil refiner has traditionally supplied 90% of the fuel used in Berlin.
In April, Germany enacted a law to sell Rosneft’s interest in the refinery, but it is not clear when or how this might occur.
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By GlobalDataLast October, Rosneft filed a lawsuit against Berlin for seizing control of its German subsidiary, and its legal counsel said in April that the German government’s activities amounted to “expropriation”.
Oil giants Eni and Shell are also shareholders in Schwedt.
Recently, it was reported that PKN Orlen, a Polish oil company, is looking to buy a stake in the PCK Schwedt refinery.
Citing PKN Orlen CEO Daniel Obajtek, Bloomberg News reported that the company will buy the stake only if the German authorities abandon Rosneft as the’ shareholder of the refinery.
“We do not want to enter into any relationship with investors from the East. This issue needs to be first resolved by the German side,” Obajtek said in an interview earlier this month.
