The German federal government took control of the German subsidiary of the Russian oil consortium. Rosneft. This was announced by the Federal Ministry of Economy this Friday in the hands of the green politician. Robert Habeck. Berlin gives the company to the trustees of the Federal Energy Agency. trust institution, with those who remain de facto under state control.
The agency will not only manage the subsidiary, but also oversee all three companies. refineries Germany has a stake in: Schwedt in the northeast and MiRo and Bayernoil in the south of the country. The measure currently foresees a period of six months. The Federal Energy Agency can dismiss members of the company’s management, appoint new directors, and issue orders regarding its operation.
With this measure, Berlin plans to guarantee fuel supply in the country. According to the Ministry of Economy data, the Rosneft subsidiary has 12% of the total crude oil processing capacity in Germany. “The trust removes the threat to the security of energy supply and lays a cornerstone for the protection and future of the Schwedt field,” the ministry’s press release said. German authorities not interfered with the subsidiary famine In the midst of the current energy crisis, gas stations
three refineries
The Schwedt refinery, a town close to the Polish border, is the most important of the three refineries owned by Rosneft’s German subsidiary. so far only Russia bought oil via the Druschba pipeline. Ironically, “Druschba” means friendship in Russian. This pipeline was christened as such in 1964 to transport oil from the Soviet Union to Central Europe.
“The failure of the Schwedt refinery, petroleum products and therefore other vital products will be affected and endangered, especially in the northeast of Germany”, reassures the Ministry of Economy.
The aim of the German government is to search as soon as possible for alternatives to the Russian supply. The embargo on Russian oil, approved by the European Union in response to the Russian invasion of Ukraine, will come into effect in January 2023, so the end of Russian crude oil supplies is inevitable.
Possible price increase
“Russia is no longer a reliable partner,” Foreign Minister Olaf Scholz said on Friday. In an appearance with Robert Habeck, the chancellor and vice-chancellor also announced a “future package” of nearly one billion euros in public aid for East Germany. With this money, it is aimed not to collapse the energy infrastructures in the east of the country and thus to prevent deterrence. layoffs of more than a thousand workers.
The intervention of the Rosneft subsidiary, added to the end of the Russian oil supply, will likely lead to an – even greater – increase in fuel prices in Germany. Currently in Germany a liter of diesel costs close to two euros and the Super E10’s is around 1.80 euros. The most important factor driving inflation in Germany, which closed last August with an annual increase of nearly 8%, is the increase in energy prices. Economic analysts assume that inflation will exceed double digits by the end of this year or the beginning of next year.