The federal government is probably considering expropriating Rosneft

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PCK refinery in Schwedt: Shares of around 54 percent are currently under federal state control

Photo: Patrick Pleul / dpa

The Federal Ministry of Economics has apparently invited the Russian oil company Rosneft to a hearing about the possible nationalization of its assets from Rosneft Germany. The news agencies Reuters and dpa both report this, citing government circles, and the “Handelsblatt” also wrote that appropriate precautions had been taken for nationalization.

The background is the expiry of the federal trusteeship for Rosneft's share in the refinery in Schwedt in March. According to the Reuters news agency, two insiders said that with the invitation to the hearing, no decision had yet been made as to whether the federal government would really go this route or whether the trusteeship, which has existed since September 2022, will be extended. No information can be provided about the details of the ongoing proceedings. Rosneft has not yet responded to the report.

The Russian Rosneft group holds the majority of the Brandenburg refinery PCK in Schwedt. The shares of around 54 percent are currently under federal state control. The aim of this trust administration is to keep the plant, which has been operated with Russian oil for decades and is very important for the supply of East Germany, running despite the Russian war of aggression against Ukraine and the EU oil embargo. PCK Schwedt is the fourth largest refinery in Germany.

Security of supply at stake

The federal government's primary goal is likely to remain to ensure security of supply and to secure Rosneft Germany's business operations reliably and in the long term. With regard to the expiry of the trust administration, it was said that without subsequent government measures, Rosneft Germany was in danger of no longer being able to fulfill its supply mandate.

The government has been hoping for months that Rosneft would sell its share in the Schwedt refinery in order to secure the future of the refinery. Some investors have made an entry dependent on the Russian company's exit.

“We are on the right track in Schwedt and will continue to take all the necessary measures to preserve jobs and secure supplies to East Germany,” said Michael Kellner, Parliamentary State Secretary in the Ministry of Economic Affairs, generally speaking about the situation at the East German refinery. »We continue to intensively support the supply of crude oil to the Schwedt site in discussions with partners. This particularly includes discussions with companies from Poland and Kazakhstan,” said the Green politician. Next week he will travel to Poland together with Federal Minister of Economics and party friend Robert Habeck.

Kellner added that the refinery was operating at good capacity. The supply situation has always been guaranteed since the start of the trust, meaning the location and its jobs are secured. “The primary goal remains to ensure security of supply and to secure the operations of Rosneft Deutschland and PCK Schwedt as well as the MiRO and Bayernoil refineries reliably and in the long term,” said Kellner. The location with its jobs will be maintained and expanded. He referred to a future fund for the region that has already started with numerous measures.

Russian economy is growing – plus 3.6 percent

Despite numerous Western sanctions, the Russian economy recovered from the economic downturn in 2023. The gross domestic product (GDP) increased by 3.6 percent, according to the state statistics service Rosstat. In 2022, when Russia began the war against Ukraine, the economy had collapsed by 1.2 percent. Even though the economy has now recovered, there are still problems. According to economists, the economy, which has been shaped by the war economy, is showing signs of overheating, which could threaten the country with stagnation or even recession.

The Russian Center for Macroeconomic Analysis and Short-Term Forecasts (CAMAC) attributes around 60 to 65 percent of the increase in industrial production in the past two years to the Ukraine conflict. It is perhaps too early to speak of a recession, say the experts. But there are signs that the economy is faltering in sectors such as automobile production and construction. "I don't think the current economic growth is sustainable or qualitative," said Yevgeny Nadorshin, chief economist at PF Capital. "I see it as a harbinger of an impending economic crisis, perhaps the first since 2004, which may not even require an external shock."

April/Reuters/dpa