A threat to fuel supplies in Berlin? Germany is negotiating with the USA regarding the refinery in Schwedt

Germany is in dialogue with the US authorities regarding the extension of the exemption from American sanctions for the German subsidiary of Rosneft, which controls the oil refinery in Schwedt, said German Deputy Minister of Economy Frank Wetzel on Tuesday.

“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.

Russian shares under German management

In a letter from January, the content of which was seen by Reuters,The management of the Schwedt refinery issued 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.

The case concerns measures implemented in autumn last year US sanctions on the two largest Russian oil companies, Rosneft and Lukoil. 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.

Crucial for Berlin and Brandenburg

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.

From Berlin Mateusz Obremski (PAP)

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