US Plans Six-Month Sanctions Reprieve for German Rosneft Subsidiary Amid Berlin Transition

The United States has proposed a six-month reprieve from sanctions on Rosneft Deutschland, the German subsidiary of Russia’s oil giant Rosneft, to give Germany time to resolve ownership issues and prevent disruption to its refining sector. German Economy Minister Katharina Reich confirmed that Rosneft Germany is exempt from new U.S. energy sanctions as it is no longer controlled by Moscow, a status acknowledged by a letter of support from the U.S. government. Rosneft Deutschland owns key assets, including the PCK Schwedt refinery, which accounts for over 12% of Germany's refining capacity, making its continued operation critical for Germany’s fuel supply. The German government seized Rosneft's assets after Russia’s 2022 invasion of Ukraine and has maintained trusteeship, avoiding nationalization due to concerns about Kremlin retaliation and energy security. The U.S. sanctions aim to pressure Russia over the war in Ukraine, but the exemption for the German subsidiary reflects its operational and ownership separation from Russia. Germany and the U.S. continue discussions on a long-term solution as the current trusteeship expires in 2026.