Germany Warns of Oil Supply Shock as US Sanctions on Rosneft Subsidiaries Near Expiry
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Germany Warns of Oil Supply Shock as US Sanctions on Rosneft Subsidiaries Near Expiry

The German federal government warns of serious supply risks for oil and refinery products if U.S. sanctions are once again re‑imposed on the German subsidiaries of Rosneft. Politico reported that the German Ministry of Economics (BMWi) answered an oral question from Left Party MP Christian Görke on 28 January in writing. The ministry said that an immediate loss of Rosneft Deutschland and its controlled refinery capacity, or even just the PCK facility, could not be compensated on a short‑term basis by additional imports of refinery products.

Rosneft Deutschland is deemed centrally important for the country’s energy security. Through another subsidiary, the company holds stakes in the Brandenburg PCK refinery and two other German refineries, together covering roughly 12 % of Germany’s refining capacity. The ministry stressed that the smooth operation of Rosneft Deutschland is essential, especially for the reliable supply of oil and the functioning of the PCK‑Refinery  GmbH. This, in turn, is vital for maintaining fuel supplies for the people, businesses and institutions in Northeast Germany-including the new Berlin airport (BER)-and for West Poland.

The question from Görke arose because the U.S. currently grants a temporary exemption from its sanctions against Rosneft. The BMWi was able to secure a short‑term extension for the German Rosneft subsidiaries, but that exemption expires at the end of April. The ministry is now working to make the exemption permanent to give affected companies legal certainty. It is in close contact with U.S. authorities on this matter.

At the same time, the federal government is preparing alternative scenarios to safeguard supply. Görke urged the government to act swiftly, saying that Finance Minister Reiche has no time to lose; she cannot wait until the end of April-or even March-to announce a follow‑up solution, otherwise the problem would become irreparable.