The threat of sanctions hangs over the German company. The government started negotiations with the Americans
“We are in a very close and constructive dialogue with the relevant US authorities regarding the extension of the relevant OFAC general license for Rosneft Deutschland,” Wetzel said in a statement.
This announcement appeared after a meeting of representatives of the German government with the authorities of the state of Brandenburg and the management of the refinery.
In a letter from January, the content of which was seen by Reuters, the management of the Schwedt refinery sent an “urgent appeal” to Germany's Minister of Economy and Energy, Katherina Reiche, to reach an agreement with the United States regarding sanctions and the future of the plant.
- A blow to the Russian economy. Oil is cheaper than Putin expected. Reason? US sanctions
The case concerns the US sanctions on the two largest Russian oil companies, Rosneft and Lukoil, introduced last fall. Following requests from Chancellor Friedrich Merz's government, the Schwedt refinery, which was under German trust, was excluded from sanctions for Russia's war with Ukraine. As Reuters reminds, this exemption is scheduled to expire on April 29.
However, the threat of being subject to sanctions regime creates serious problems for the refinery, which bases its operations on long-term contracts, financial guarantees and insurance. Such pressure may speed up the process of selling the plant. So far, however, Rosneft has not found a buyer for its German company.
The refinery in Schwedt is one of the largest petrochemical enterprises in Germany. It processes 12 million tons of crude oil annually. Provides 90 percent supplying Berlin and Brandenburg with gasoline, aviation fuel, diesel oil and heating oil.
