The German energy industry is in turmoil after the war in Ukraine The German regulator now has control of the Schwedt refinery The Schwedt refinery is the main source of fuel for Berlin PKN is interested in controlling shares in a refinery – sources
BERLIN, Sept 16 (Reuters) – Germany has taken control of a major Russian-owned oil refinery, risking retaliation from Moscow as Berlin tries to boost energy supplies and fulfill a European Union pledge to eliminate Russian oil imports by the end of the year. The economy ministry said it was placing a unit of Russian oil company Rosneft ( ROSN.MM ) under the watchdog of the industry regulator and taking over the firm’s Schwedt refinery, which supplies 90 percent of Berlin’s fuel. “With the trusteeship, the threat to the security of energy supply is addressed and an essential foundation stone is laid for the preservation and future of the Schwedt site,” the ministry said in a statement. Sign up now for FREE unlimited access to Reuters.comSign up Governments across Europe are scrambling to prop up energy providers and secure fuel deliveries as they sanction major supplier Russia over its invasion of Ukraine. Moscow responded by cutting gas flows and threatening to shut off all taps, sending prices soaring and raising the prospect of an energy dividend in Europe this winter. Rosneft Deutschland, which was majority-owned by the Russian oil group and accounts for about 12% of Germany’s oil refining capacity, is being placed under the guardianship of the Federal Network Agency regulator. The regulator said the original owner no longer had the authority to issue instructions. Rosneft Deutschland and Rosneft did not immediately respond to requests for comment. Polish refiner PKN Orlen ( PKN.WA ) is interested in taking a controlling stake in the Schwedt refinery, which is Germany’s fourth largest and also supplies parts of western Poland, sources in Berlin and Warsaw familiar with the matter told Reuters . read more Shell, which owns a 37.5% stake in Schwedt, has wanted to sell it for some time. Shell said on Friday it was unaffected by the German move to take control of the refinery. The Schwedt refinery has posed a dilemma for Berlin for several weeks as it has received all of its crude from Russia, but Germany is determined to end oil imports from Russia by the end of the year under European Union sanctions. However, Schwedt’s takeover risks retaliation from Moscow. Poland said earlier this year that ending Russian ownership of the refinery was a condition for potentially supplying it with seaborne oil through a terminal in Gdansk and through Polish pipelines to replace Russian crude. Germany’s economy ministry said Friday’s move included a package to ensure the refinery could receive oil from alternative routes, without elaborating. Chancellor Olaf Solz, Economy Minister Robert Habeck and Brandenburg’s prime minister are due to announce more details at 11:30 GMT. Germany’s move for Rosneft Deutschland is its latest attempt to stabilize the energy market. The government said this week it would step up lending to companies at risk of being crushed by rising gas prices, and power company Uniper said the state could take a controlling stake, adding that a government rescue package worth 19 billion euros ($19 billion) was not enough more. read more The government also placed SEFE, formerly known as Gazprom Germania, under guardianship after Russian energy giant Gazprom ( GAZP.MM ) fired it in April. Berlin is grappling with Russia’s move to halt natural gas flows through the Nord Stream 1 pipeline, which was the longest natural gas route feeding Europe’s largest economy. As a result of Friday’s decision, the Federal Network Agency will take Rosneft Deutschland’s shares in the MiRo refinery in Karlsruhe and the Bayernoil refinery in Vohburg. ($1 = 1.0019 euros) Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Markus Wacket in Berlin, Paul Carrel in Geneva and Shadia Nasralla in London. Edited by Edmund Blair and Mark Potter Our Standards: The Thomson Reuters Trust Principles.
