U.S. Exempts Rosneft's German Operations from Sanctions: A Relief for Energy Security

The U.S. has assured Germany that Rosneft's operations there are exempt from new energy sanctions, as they are decoupled from Russian ownership. This 'Letter of Comfort' clears any uncertainty for Germany's energy sector, particularly affecting the PCK refinery in Schwedt, crucial to the nation's fuel supply.

The U.S. government has offered Germany written assurances, exempting Rosneft's German business from impending energy sanctions, underscoring the separation from Russian ownership. Germany's economy minister, Katherina Reiche, confirmed receiving a 'Letter of Comfort' that decouples Rosneft's operations in Germany from its Russian parent company.

The letter follows Germany's request for clarity as the Trump administration implemented sanctions prohibiting Western banks and clients from transactions with Russian firms. Reiche indicated the exemption is indefinite, although further clarifications are forthcoming.

This assurance removes uncertainty for businesses involved with Rosneft's German subsidiaries, essential for Germany's fuel supply, notably the PCK refinery in Schwedt. The economy ministry continues dialogue with the U.S., aiming for permanent protection against sanctions impacting Rosneft's German assets.

(With inputs from agencies.)