Germany aims to speed Rosneft's exit from Schwedt refinery

Verbio SE

16/02/2023 18:55

(Adds details, background)
    By Markus Wacket
       BERLIN, Feb 16 (Reuters) - Germany plans to change its
Energy Security Act to allow a quick sale of Russian energy
group Rosneft's stake in the Schwedt refinery without the need
for prior nationalisation, a draft law showed, as Berlin strives
to stabilise a key energy supplier.
    Under the planned adjustment to the law, the condition of
prior nationalisation of assets put under government trusteeship
could be withdrawn if the sale of the assets is needed to ensure
that Germany's energy sector remains functional, the draft law,
seen by Reuters on Thursday, showed.
    Germany took control of the Schwedt refinery last year in
the wake of Russia's invasion of Ukraine, and put Rosneft
Deutschland under a trusteeship of the German industry
regulator, but Rosneft still holds 54.17% of the refinery.
    The Russian state energy giant sued the German government in
October over its actions. Malmendier Legal, the law firm hired
by Rosneft, was not immediately available for comment. 
    Other shareholders in the refinery, which supplies 90% of
the German capital Berlin's fuel, include oil majors Shell
 SHEL.L , with a 37.5% stake, and Eni  ENI.MI , with 8.33%.
    The planned adjustment, drafted by economy ministry and
being voted on by the cabinet, gives the government more leeway
to transfer assets put under trusteeship. Such transfers are
currently only legally possible if they serve to preserve the
value of the company.
    With the European Union embargo on Russian oil, which went
into force earlier this month, Germany has been trying to find
ways to supply the refinery with oil. 
    The refinery has been running at only 60% capacity with oil
coming through the German port of Rostock, and the government
wants to raise that by supplying the refinery with crude
imported through the Polish port of Gdansk.
    Poland has repeatedly said the "de-rusification of Schwedt"
was a condition for help in providing oil for the refinery,
while encouraging Polish utility Orlen  PKN.WA  to take a stake
in Schwedt.
    German companies such as Enertrag and Verbio  VBKG.DE  are
also interested in taking a stake in Schwedt, which has over
3,000 direct and indirect employees and plays a central role in
supplying East Germany with gasoline and other oil products.
    The Brandenburg state government is concerned that low
output from the refinery could lead to higher fuel prices in
eastern Germany. The state government is due to meet with the
federal economy ministry expert committee on the refinery on
Monday to discuss possible solutions.
 (Reporting by Markus Wacket, additional reporting by Riham
Alkousaa
Writing by Riham Alkousaa 
Editing by Susan Fenton and Mark Potter)
 ((Riham.Alkousaa@thomsonreuters.com; Twitter: @RihamKousa;))