Germany Considers Nationalizing Rosneft’s Subsidiary Amid US Sanctions
In Germany, discussions have reignited over the possibility of nationalizing the local subsidiary of the Russian oil giant Rosneft, following recent sanctions imposed by the United States on the Russian energy corporation.
According to Reuters, citing two informed sources, the German government is contemplating various options, including the confiscation and subsequent sale of the company’s assets.
Details: On Wednesday, the US Department of the Treasury issued a license temporarily exempting Germany’s Rosneft subsidiary from US sanctions until April 2026.
While maintaining the priority of securing permanent sanctions relief, German officials are also considering the option of confiscating the unit and selling it to foreign investors.
The German branch controls a majority stake in the Schwedt oil refinery, which supplies most of Berlin’s fuel.
Additionally, the company holds shares in two other refineries: MiRo and Bayernoil.
Since Russia’s full-scale invasion of Ukraine in 2022, these assets have been transferred to trusteeship, giving the German government oversight over them.
This arrangement is renewed every six months but can be challenged in court, as each renewal scrutinizes the legal basis of what was initially a measure of a temporary extraordinary nature.
To date, Berlin has avoided confiscation due to concerns over paying compensation to Russia.
Rosneft has been trying to sell this business since March 2024, but without success.
Mikhail Kellner, a Bundestag deputy from the Green Party, has called on the government to nationalize the enterprise, emphasizing its strategic importance for Germany.
According to him, nationalization would ensure the security and stability of the country’s energy supplies.
Germany used to import oil directly from Russia but now sources it from Kazakhstan, although Russia still controls the pipeline used for delivery, complicating the situation.
Background: In late October, the Trump administration imposed sanctions on Rosneft and Lukoil, adding further hurdles for Russian business in Europe.