Germany aims to nationalize Rosneft's subsidiary. Kremlin shrugs
Rosneft (Photo - EPA)

The German government is preparing to nationalize Rosneft Deutschland, a subsidiary of Rosneft, according to Reuters and two German publications, Deutsche Presse-Agentur and Handelsblatt, citing sources.

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In September 2022, the German government seized Rosneft's assets located in the country. It was specified that the federal government transferred the enterprises Rosneft Deutschland GmbH and RN Refining & Marketing GmbH into the trust management of the Federal Network Agency under the Energy Security Act.

"Thus, the Federal Network Agency gains control over Rosneft Deutschland, as well as over corresponding shares in three oil refineries – PCK (Schwedt), MiRo (Karlsruhe), and Bayernoil (Vohburg)," the document stated.

Since then, this decision has been extended multiple times, with the current period expiring on March 10.

"We are on the right track regarding Schwedt and will continue to take all necessary measures to preserve jobs and ensure supplies in East Germany," a State Secretary at the Federal Ministry for Economic Affairs and Climate Action, Michael Kellner, told Reuters.

According to Handelsblatt, the German government believes that regularly extending it for six months is not a sustainable solution in the long term.

The Kremlin stated that the nationalization of Rosneft's asset in Germany would constitute the expropriation of foreign property, and Moscow anticipates taking measures in response to protect its interests and counter "illegal steps," said the press secretary of the Russian president, Dmitry Peskov.

However, he called it a "corporate issue," and for now, Rosneft is defending its interests by itself, with no state-level negotiations between Berlin and Moscow regarding Rosneft's assets in Germany, Peskov said.