Germany is set to extend its control over Rosneft’s German assets for another six months, as the Russian oil giant and Qatar reportedly negotiate a potential sale of these assets, according to sources familiar with the situation who spoke to Reuters on Monday.
The Schwedt refinery, Germany’s fourth-largest, is 54% owned by Rosneft. It receives oil through the Druzhba pipeline from Russia and supplies 90% of Berlin’s fuel needs. In September 2022, following Russia’s invasion of Ukraine, Germany placed Rosneft’s local operations under trusteeship, entrusting the country’s energy market regulator with control over the Schwedt refinery.
At that time, the German government stated that the trusteeship aimed to secure energy supplies and lay the groundwork for the future of the Schwedt site.
The extension of the trusteeship, which is set to end on September 10, is expected to facilitate ongoing discussions about selling the Rosneft assets to Qatar, sources told Reuters.
This extension would mark the fourth renewal of the trusteeship since it began in September 2022.
Rosneft is Germany’s third-largest petroleum refinery company, handling about 12.5 million tons of crude oil annually, which accounts for over 12% of Germany’s total processing capacity, according to Rosneft Germany. Recent reports suggest that Qatar is negotiating to acquire Rosneft’s stake in the PCK Schwedt refinery.
The Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, holds a 19% stake in Rosneft. Bloomberg reported that Qatar is the sole remaining bidder for the refinery, with a delegation having visited Berlin recently. According to Bloomberg’s sources, the German government is likely to approve the deal, leaving the decision in Rosneft’s hands.