Germany confirms plans to sell Rosneft Deutschland

Malmendier Legal, the law firm hired by Russian oil major Rosneft, has confirmed plans to sell its German business to a refinery in Schwedt in eastern Germany. "It is true that Rosneft is seriously considering the sale of its assets in Germany," the company said in response to a Reuters inquiry.

The response also notes that Rosneft could still provide energy supplies to Germany, but that the political environment for this is currently difficult.

To facilitate the sale, the German government could return control of its German subsidiary Rosneft Deutschland to the Russian concern and not extend the trust management period, but it is expected to be extended, it is further noted.

Earlier it became known that the German Ministry of Economy is studying the possibility of nationalising Rosneft Deutschland's assets, but no final decision has been made yet.

Rosneft Deutschland, a wholly owned subsidiary of the Russian concern Rosneft, is the majority co-owner of the Schwedt refinery in Brandenburg.

Rosneft's assets were transferred to the German government in trust after Russia's armed invasion of Ukraine in 2022 to ensure energy security primarily for Berlin and its surroundings, as well as western Poland.

The term of the trust management expires in March.

Some investors are linking the possibility of investing in the Schwedt plant, which is Germany's fourth-largest refinery, to Rosneft Deutschland's exit.