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Rosneft expropriation still 'on the table', says German state secretary

Published 08/03/2024, 15:02
Updated 08/03/2024, 16:01
© Reuters. A view shows fuel tanks at a facility of Rosneft energy company outside the town of Neftegorsk in the Samara Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
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By Andreas Rinke

BERLIN (Reuters) -Expropriating Rosneft's German assets remains an option, a state secretary in Germany's Economy Ministry said on Friday, urging the Russian oil firm to swiftly propose potential buyers and not to return as owners later on.

Michael Kellner's comments come a day after Berlin extended its trusteeship over Rosneft's German assets for the third time since 2022, stopping short of nationalising them as Rosneft has signalled its willingness to find a new owner.

Kellner said Germany would not allow substitute owners for the assets - including a 54.17% stake in the Schwedt refinery in eastern Germany - that would allow Rosneft to eventually buy back in.

"It is now up to the Russian side to present possible buyers. If these are investors outside the EU, we will carry out relevant checks in line with the Foreign Trade and Payments Act," Kellner said.

"The question of expropriation remains on the table. It is clear that we need a permanent solution for the three refinery sites," he added, referring also to Rosneft's two other German holdings in the MiRo and Bayernoil refineries.

Kellner said that the extension of the trusteeship was key in that it secured the refinery's jobs and secured stability of supply, adding there was now time for Russia to find new owners for Rosneft's shareholdings.

© Reuters. A view shows fuel tanks at a facility of Rosneft energy company outside the town of Neftegorsk in the Samara Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo

The ownership tussle over Rosneft in Germany highlights the deteriorated relationship between Russia and Germany since Moscow's invasion of Ukraine, with both countries trading blows by seizing each other's energy assets.

Since the war started, Germany has nationalised Sefe, which comprises the former local assets of Gazprom (MCX:GAZP), while Moscow has essentially put the Russian assets of both Uniper and Wintershall Dea under its control.

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