After negotiations with Berlin: what will change for Rosneft Deutschland
4 March 21:45
The US intends to lift sanctions on the German subsidiary of Russia’s Rosneft, which has been under Berlin’s control since the start of the full-scale war, for an indefinite period. This was reported by Bloomberg , citing sources, according to "Komersant Ukrainian".
The company in question is Rosneft Deutschland, which is owned by PJSC Rosneft but has been under the temporary control of the German regulator since September 2022.
What is known about the decision
According to the agency’s source, the US Treasury’s Office of Foreign Assets Control (OFAC) plans to announce the decision in the near future. The timing is subject to change.
The exemption will be indefinite and, as Bloomberg notes, could be seen as a diplomatic victory for Berlin after intense negotiations with Washington.
The company already has a temporary exemption from sanctions until April 2026.
Why this is important for Germany
Rosneft’s German assets were taken under control after Russia’s invasion of Ukraine in 2022. They include stakes in three oil refineries, which account for about 12% of the country’s refining capacity, as well as participation in the Transalpine Pipeline.
The key asset is the PCK Schwedt refinery, which came under state control but was not formally nationalized.
After sanctions were imposed on the parent company Rosneft at the end of last year, the status of the German subsidiaries remained uncertain.
Balancing sanctions and energy security
From the outset, Berlin has tried to combine the sanctions regime with the need to ensure the stability of the fuel market. Every six months, the government continues the temporary asset management regime through the Federal Network Agency (Bundesnetzagentur).
The court previously rejected Rosneft’s lawsuit against the German authorities’ decision to establish control over its assets.
At the same time, Shell has resumed attempts to sell its stake in the PCK Schwedt refinery, the majority of whose shares are controlled by Russia.
What does indefinite dismissal mean?
If the OFAC decision takes effect, it will allow the German subsidiary to operate without the risk of secondary sanctions from the US.
