The German government is taking control of three Russian oil refineries in Germany – part of a series of interventions as it secures energy supplies in the face of a European ban on Russian crude imports. The move is designed to ensure the continued operation of subsidiaries of Russian oil giant Rosneft in Germany to ensure the production and supply of gasoline, heating oil and other products. The most important is the PCK refinery in Schwedt along with two other refineries in the south. Both Rosneft Deutschland and RN Refining & Marketing will come under the administration of the Federal Network Agency – an independent federal authority based in Bonn, according to the Federal Ministry of Economic Affairs and Climate Action. The refineries provide about 12 percent of the country’s crude oil processing capacity, making Rosneft Deutschland one of the largest oil refiners in Germany, the economy ministry said in a statement. German Chancellor Olaf Scholz said securing production at the PCK refinery was a “major energy policy decision to protect our country”. Russia, he said, is no longer a reliable partner. Rosneft’s German subsidiaries imported hundreds of millions of euros worth of crude oil from Russia into Germany every month. Reliance on Russian gas hits Germany hard and could push country into deep recession Russian state oil company Rosneft has accused the German government of “forced expropriation” of its German subsidiaries. In a statement on Friday night in Moscow, the company called it an “illegal” seizure of its assets and said it would take legal action against Berlin’s move to protect its assets. At the same time, Rosneft made it clear that the federal government’s decision meant it was no longer able to “guarantee the industrial and environmental safety of the plant.” However, the company was also ready to negotiate a possible new contract – provided there was a guarantee of payment for oil deliveries, for investments and for the rights of the company’s workers. Europe’s oil embargo against Russia over its war on Ukraine will come into effect on January 1. Meanwhile, the PCK refinery can still get Russian oil through the Druzhba pipeline. Germany has been looking for alternative oil suppliers for months and has contacted the Polish government about possible deliveries through the port of Gdansk, Susanne Ungrad, a spokeswoman for the Federal Ministry of Economic Affairs and Climate Action, said. But the Polish government did not want to deliver oil to a Russian-owned refinery. “Germany needs the support of the Polish government to organize the transportation of oil through Gdansk. The German government’s overreach of Rosneft Deutschland must now be seen in this context,” energy expert Steffen Bukold told The Globe. To prepare the refinery for crude oil from countries other than Russia, the facilities will have to be adapted. If the measures were taken in the winter, when the oil embargo begins, “it would be too late,” Mr. Bukold said. About 50 percent of the Schwedt refinery’s capacity can now be supplied via pipeline from the German port of Rostock. “This can start immediately, already now there have been deliveries of non-Russian oil in recent months that have worked well. And already now non-Russian oil is steadily arriving,” Ms. Ungrad said. Oil currently comes from the United States or Libya, for example. In addition, oil storage facilities in Schwedt and Leuna are full and can be used for a few days without deliveries, Ms. Ungrad added. Oil from the national oil reserve can be scheduled through transport. Officials at the PCK refinery fear that Russia could react quickly. “We are preparing for possible, short-term restrictions on the supply of Druzhba crude oil,” the company said. Russia is already squeezing gas supplies to Europe, crippling the economy in retaliation for the continent’s support for Ukraine. The gas cut through the Nord Stream 1 pipeline continues. Federal Network Agency spokeswoman Ulrike Platz confirmed: “Since September 1, no more Russian pipeline gas has come to Germany. No natural gas is imported from Russia either through Nord Stream 1 or through Poland.” This worsens the already tense situation of German company Uniper SE and two other gas importers. The government is also working on a plan to take them on. Russia’s energy minister announced on Friday that Nord Stream 2 will be “replaced” by an alternative natural gas pipeline to China, as the strategic project has not made progress due to Western sanctions on Moscow. Alexander Novak made the announcement in an interview with Russian television channel Rossiya-1 on Thursday, responding with a resounding “yes” to a question about whether Moscow would replace the European Nord Stream 2 with the Asian Force Siberia 2 amid of the conflict in Ukraine.
