Germany Considers Nationalizing Rosneft's German Operations After US Sanctions

Germany is actively reconsidering the nationalization of Rosneft Deutschland, the German subsidiary of Russian oil giant Rosneft, following recent U.S. sanctions on the company. This subsidiary controls the Schwedt refinery, a critical facility supplying most of Berlin's fuel, including for the airport, regional gas stations, and the chemical industry. Although Berlin's preferred approach remains securing a permanent exemption from U.S. sanctions, officials are exploring the potential seizure of Rosneft's assets and their sale to foreign investors amid the legal complexities of the government’s current trusteeship arrangement established in 2022. The trusteeship, renewed every six months, faces legal scrutiny as a temporary emergency measure, and Germany has avoided outright confiscation due to concerns over compensation claims from Moscow. Russian media value these assets at around $7 billion, though some German sources estimate the actual worth to be significantly lower. The situation underscores Germany's difficult balancing act between maintaining energy security and navigating geopolitical tensions with Russia and the U.S.