On the brink of the deadline, the Federal Government extends its oversight of Rosneft Germany's trust management.
Alright, let me rephrase this for you:
Just before the September 10 cutoff, the federal government extended its management of Rosneft Germany's operations as a trustee once again. Rosneft Germany will, consequently, remain under the Federal Network Agency's jurisdiction until March 10, 2025, as announced by the Ministry of Economy on Monday. The company's operations encompass three refineries, with approximately 54% ownership of the PCK Schwedt in Brandenburg.
Rosneft Germany holds a significant 12% share in Germany's total oil processing capacity, making it one of the country's leading oil processing companies, the ministry pointed out. The need to extend the trustee administration was highlighted due to potential risks to the country's energy security. The move is particularly crucial in ensuring the supply of oil to the federal states of Berlin and Brandenburg.
The Ministry reported that Rosneft Russia has provided credible evidence of its intention to sell Rosneft Germany by the end of the year. Statements from potential buyers and negotiating sessions with the federal government support this claim. Reports suggest that the emirate of Qatar is considering purchasing Rosneft's shares in the PCK Schwedt.
The Economics Ministry asserted that selling Rosneft Germany would be the most legally secure and speediest method to facilitate investments in the refineries and secure the sites. This option has become viable thanks to Rosneft's decision to halt its legal challenges against the trustee orders.
Originally owned 100% by the Russian conglomerate Rosneft, Rosneft Germany fell under the trusteeship of the Federal Network Agency in September 2022, following the start of Russia's invasion of Ukraine. The trusteeship was initially valid for six months and necessitates periodic extension. The previous trusteeship was set to expire on September 10.
Rosneft Germany, currently under federal government management, contributes significantly to Germany's oil processing capacity with a 12% share. The federal government's extension of its trusteeship over Rosneft Germany is crucial to maintaining oil supply to Berlin and Brandenburg.
