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Why Germany Requests Sanctions Exemption for Rosneft Refineries


Germany explains its request for an exemption from US sanctions for Rosneft refineries now under state control.

Germany has appealed to the US not to include the refineries of Rosneft's subsidiaries in the new package of sanctions. These plants, located in Germany, have been under external management by the German state since September 2022. The Federal Network Agency fully controls their operations, and all profits are handled by Germany—Moscow receives no financial benefit.

The new US sanctions targeting Rosneft and other companies are intended to further isolate Russia’s energy sector. However, imposing restrictions without exceptions for German state-controlled subsidiaries could halt critical infrastructure due to difficulties with banking and financial operations.

The refineries, especially the plant in Schwedt, supply up to 12% of the country’s fuel and support thousands of jobs in economically vulnerable regions. Since external management began, oil has been imported via alternative routes, with Russian supplies discontinued. Moscow has lost all operational control and profit from these assets.

Germany argues that sanctions against these subsidiaries would impact a German state asset with no current economic ties to Russia, further complicating the energy situation without additional pressure on Moscow. The UK government has already granted such an exemption.

The situation around the Rosneft refineries under German management remains a subject of political debate in Germany, as their closure would have serious socio-economic consequences without increasing pressure on Russia. Experts note that the key goal should be to prevent these assets from returning to Russian hands after the special management regime ends.