Berlin is reportedly seeking to secure domestic refining operations as the Middle East conflict rattles global energy markets
The US will exempt the German subsidiary of Russia’s state-owned oil giant Rosneft from sanctions indefinitely, Bloomberg has reported, citing sources.
The arrangement, expected to be officially announced on Friday, would ensure continuing refining operations in Germany as the escalating Middle East conflict has triggered fears of disruptions to oil and gas supplies, the outlet wrote on Wednesday.
Rosneft Deutschland holds stakes in three German refineries that have been under state administration, known as a trusteeship, since the escalation of the Ukraine conflict in 2022 and ensuing sanctions. The facilities account for roughly 13% of the EU country’s refining capacity.
Trusteeship means that while Rosneft maintains ownership, the German subsidiaries are effectively “decoupled” from the parent company’s sanctioned status and are able to function.
Read more Moscow slams EU’s ‘disastrous’ energy decisionsIn October, the US targeted Rosneft with sanctions, barring American firms and financial institutions from dealing with it and its subsidiaries. A temporary license was issued, giving Germany until April 29 to either sell the assets or nationalize them. Berlin has faced difficulty finding a buyer and has been reluctant to nationalize for fear of retaliation from Moscow and costly legal battles. Rosneft has condemned the trusteeship as “unlawful” and a violation of market principles.
The management of the largest refinery, PCK Schwedt, which supplies roughly 90% of the fuel to the city of Berlin, reportedly sent a private letter to the German government in January warning that the sanctions were “already choking day-to-day operations” and threatening to cause fuel shortages for the capital.
The indefinite exemption expected this week would provide the legal certainty that banks, insurers, and suppliers will deal with Rosneft Deutschland.
READ MORE: How energy markets have responded to the Middle East war
The need for stable refining capacity is particularly acute now. In the Middle East, Iran has been retaliating against US and Israeli strikes with missile and drone attacks, including on regional oil facilities. Shipping through the Strait of Hormuz, a waterway between Iran and Oman that carries roughly 20% of the world’s oil exports, has largely ground to a halt, raising fears of global supply disruptions.
Hence then, the article about us to exempt russian oil giant s german units from sanctions bloomberg was published today ( ) and is available on Russia Today ( News ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( US to exempt Russian oil giant’s German units from sanctions – Bloomberg )
Also on site :
- Asian Markets in Freefall as Oil Price Surge Stokes Inflation Fears
- Fakeeh Care Group reports FY 2025 revenue of SR3.1 billion, up 11% year on year; Attributable net profit reaches SR290 million, up 1% year on year or 14% excluding DSFH Madinah Ramp-Up Impact
- Barclays Warns Grid Constraints Could Strand Renewables Assets