Rosneft signaled a projected rise in fuel costs for Germany tied to changes at the RSK Raffinerie GmbH facility in Schwedt, with the note coming as Europe faces ongoing shifts in oil supplies. According to the company, shareholders are weighing several pathways to process fuels using oil types beyond the traditional Russian Urals, including diversifying supply routes and mixing different grades at refineries. A test batch of oil destined for the RSK refinery recently arrived in Rostock, originating from the United States.
Rosneft emphasized that American crude is roughly one-third more expensive than the price of Urals oil under long-term arrangements, and the logistics of tanker transport add to overall costs. The firm calculated that substituting Urals with alternative feedstocks could raise total expenses by as much as $20 million. In addition, Rosneft noted that the Rostock port pipeline supports only a partial loading for the refinery, unlike the Druzhba pipeline, and that these volumes cannot be fully replaced either physically or technologically.
Earlier comments from the German Ministry of Economy stated that the RSK refinery would remain within the EU sanctions framework, continuing to receive Ural oil via the Druzhba line, a route that remains outside the sanctions scope. The broader European transition continues to push away from Russian oil, with Germany signaling a complete end to Russian oil supplies by the end of 2022 in its strategic planning, a shift that has shaped refinery operations and pricing expectations across the region.
Industry observers point to the practical implications of supply diversification, noting that while alternate crudes can supplement processing, they come with cost, logistical, and technical considerations. The situation at Schwedt highlights the balance between maintaining refinery throughput and adapting to sanction regimes, transport costs, and the availability of compatible feedstocks. The reliance on Druzhba for steady Urals throughput remains a critical factor, and the limitations of port-based supply routes further constrain the ability to ramp up alternative streams quickly.
From a policy perspective, the German energy landscape continues to wrestle with ensuring stable fuel supplies while reducing exposure to single-country sources. Analysts suggest that the pricing pressure from higher-cost American crude and the broader shift away from Russian oil will influence both refinery profitability and retail fuel prices in Central Europe. The evolving mix of feedstocks, combined with maritime transport expenses and the capacity of existing pipelines, is likely to shape regional energy costs in the near term as Europe navigates toward diversified, sanction-compliant supply chains.
Industry updates indicate that refiner strategies in Germany and neighboring markets will focus on blending capabilities, storage management, and flexible sourcing to mitigate cost differentials. The Schwedt plant remains a focal point for discussions about energy independence, industrial policy, and the readiness of European infrastructure to absorb nontraditional feedstocks while maintaining compliance with international sanctions and environmental standards. The ongoing dialogue among producers, policymakers, and buyers will continue to influence market expectations, pricing signals, and the tempo of transition away from reliance on any single crude source.