Berlin's Long-term Control over Rosneft: A Structural Energy Solution

The European Commission approved a new trusteeship structure allowing Berlin long-term control over German assets of Russian oil group Rosneft. This includes refineries crucial for Berlin's fuel supply. The decision addresses regulatory concerns but doesn't tackle U.S. sanctions impacting Rosneft's operations.

The European Commission has greenlit a trusteeship structure granting Berlin long-term control over German assets of Russian oil group Rosneft, marking a significant move towards securing Germany's energy future. The assets include stakes in critical refineries such as PCK Schwedt, MiRo, and Bayernoil.

Since 2022, following Moscow's military actions in Ukraine, these assets have been under German trusteeship to safeguard energy security, with regular renewals adding a layer of uncertainty, particularly for PCK Schwedt in Berlin. The current setup expires on March 10, but the new arrangement allows the government to manage its Rosneft-associated assets indefinitely.

While the decision removes one regulatory obstacle, it doesn't tackle U.S. sanctions targeting Rosneft's business. An exemption for PCK Schwedt expires on April 29, prompting concerns from refinery management about sanctions impacting the fuel supply to Berlin and the surrounding region.