Qatar is reportedly negotiating to acquire Russian oil giant Rosneft’s stake in the German refinery PCK Schwedt, according to Bloomberg and Reuters reports on Wednesday.
The PCK Schwedt refinery, Germany’s fourth-largest, is 54% owned by Rosneft. The facility, which sources its oil through the Druzhba pipeline from Russia, supplies 90% of Berlin’s fuel needs. Since Russia’s invasion of Ukraine in 2022, the refinery has been under Berlin’s trusteeship.
The current trusteeship arrangement expires on September 10. While Berlin controls the refinery’s operations, Rosneft retains some say in the sale of its stake. As the expiration date approaches, the German government aims to finalize a deal for Rosneft’s 54.17% stake, which Russian media estimate to be worth around $7 billion. Shell holds the remaining shares and has planned to sell them to Britain’s Prax Group, a move announced in December.
Bloomberg reports that Qatar is the leading bidder for the refinery. A Qatari delegation has reportedly visited Berlin recently. According to unnamed sources, the German government is likely to agree to a deal with Qatar, leaving the decision up to Rosneft.
Rosneft did not comment on Bloomberg’s inquiry.
The Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, holds a 19% stake in Rosneft.
In February, German officials indicated that Berlin was contemplating the nationalization of Rosneft’s German assets, including the Schwedt stake. Although nationalization is not the preferred route, it remains a possibility if no agreement is reached before the trusteeship ends next month.