The Federal Network Agency announced on Friday the conversion of the temporary trusteeship over the subsidiary of the Russian oil company Rosneft into a permanent one. The decision by the federal government aims to ensure the long-term stability of oil and petroleum product supplies to Germany, particularly to the refineries in Schwedt and Karlsruhe, which are crucial for fuel supply in the eastern states. This is a continuation of the policy of cutting ties with Russian capital following the invasion of Ukraine.

Transition to Permanent Trusteeship

The Federal Network Agency, the German energy sector regulator, has been appointed as the permanent trustee of the company Rosneft Deutschland. This ends the period of temporary trusteeship introduced under emergency measures and begins a phase of long-term state control over this strategic asset.

Securing Oil Supplies

The main goal of the decision is to secure the continuous operation of the PCK refinery in Schwedt and Miro in Karlsruhe. The refinery in Schwedt supplies fuel to most of Berlin and the state of Brandenburg, being a key element of energy security in the eastern part of the country. The trusteeship is intended to prevent the Russian company from influencing these key facilities.

Response to Russia's Invasion

The decision represents another step in Germany's strategy to reduce energy dependence on Russia following its invasion of Ukraine in 2022. The temporary trusteeship was imposed as early as September 2022. Extending it permanently cements the cutting off of Russian capital from a key critical infrastructure sector.

Consequences for Rosneft

The decision means the practical takeover of control over the German assets of the Russian company by the German state for an indefinite period. Rosneft loses the ability to influence operational and strategic decisions regarding its former subsidiaries in Germany. The company may attempt to challenge this decision through legal channels.

The German federal government has decided to convert the temporary trusteeship over the subsidiary of the Russian company Rosneft into a permanent one. The Federal Network Agency, the national energy regulator, has been officially appointed as the permanent trustee of Rosneft Deutschland. This decision, announced on Friday, is of fundamental importance for German energy security, particularly in the context of fuel supply to the country's eastern regions. The main goal of this move is to secure the uninterrupted operation of the PCK refinery in Schwedt and the Miro refinery in Karlsruhe. The refinery in Schwedt is particularly crucial as it supplies gasoline, diesel, and heating oil to a significant part of Berlin and the entire state of Brandenburg. The state's assumption of permanent control aims to eliminate any influence of the Russian oil company on these strategic facilities and ensure long-term supply stability. Following Russia's invasion of Ukraine in February 2022, Germany began a radical revision of its energy policy, referred to as Energiewende. One of its pillars became cutting off from Russian supplies of oil, gas, and coal. In response to the war, the European Union imposed a series of sanctions on the Russian energy sector. The temporary trusteeship over Rosneft companies in Germany was already imposed in September 2022, based on energy security regulations. Converting it into a permanent trusteeship constitutes a logical continuation of this policy and cements state control over assets deemed critical. This decision has direct consequences for the Russian company. Rosneft loses the right to make any operational, investment, or personnel decisions regarding its former German subsidiaries. In practice, this means the long-term takeover of these assets by the German state. As agency sources indicate, Rosneft may attempt to challenge this decision in court, but in the current political climate, the chances of success for such actions are assessed as low. „„Die Entscheidung dient der langfristigen Sicherung der Energieversorgung in Deutschland”” — German government spokesperson. The decision for permanent trusteeship also fits into a broader trend in Europe, where after the outbreak of war, many countries took temporary control over strategic assets with Russian capital to secure their national security interests.

Mentioned People

  • Klaus Müller — President of the Federal Network Agency (Bundesnetzagentur)