The German Government has extended its trusteeship over the local units of Russian oil company Rosneft until 10 March 2025, with a view to potentially selling these assets to Qatar, Reuters reported.
This move aligns with Germany’s strategy to manage the fallout from the Ukraine conflict and maintain energy supply security.
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The extension, which has been confirmed by the Economy Ministry, follows previous reports and marks the fourth time Germany has prolonged its oversight of Rosneft’s operations in the country.
These operations include a significant 54.17% share in the PCK Schwedt refinery, a critical part of Germany’s energy infrastructure.
The trusteeship arrangement allows Germany to manage the businesses while Rosneft retains ownership.
This temporary measure is intended to safeguard the refinery’s operations and afford Rosneft the opportunity to secure a buyer for its stake.
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By GlobalDataRosneft’s German portfolio also encompasses interests in the MiRo and Bayernoil refineries, with the total value of its German assets estimated at around $7bn (Rs619.67bn).
The economy ministry has indicated that Rosneft has expressed a credible intention to sell Rosneft Germany by year-end.
“Rosneft Russia has now credibly stated that a sale of Rosneft Germany is being actively pursued and that this should be completed by the end of the year,” the ministry conveyed.
The potential sale to Qatar comes as the country has shown a consistent interest in German investments and holds the position of the largest shareholder in RWE, Germany’s foremost power producer.
Discussions and due diligence are under way, but finalising a deal may require additional time, Reuters‘ report said.
The German Government has also acknowledged ongoing discussions with Qatar over the past three months regarding investment opportunities, although it did not confirm whether the Rosneft assets were part of these talks.
The PCK Schwedt refinery, co-owned by Shell and Eni, has been in the spotlight since Shell agreed to sell its 37.5% stake to the UK’s Prax Group in December.
A source close to the situation told Reuters that the pending sale to Prax might be deterring other potential investors.
Moreover, a legal dispute related to the Prax transaction is set for a hearing at the Higher Regional Court of Duesseldorf on 18 September.
Shell has refrained from commenting on the ongoing sale, while the Prax Group is withholding comments until the deal’s completion.
In a scenario where a sale agreement cannot be reached, the German Government could consider expropriating Rosneft Germany under the country’s energy security law, similar to its actions with Gazprom‘s local assets in 2022.
