Germany’s refinery dilemma tests Russian oil ban resolve

Germany is struggling to find a way to wrest control of a Russian-owned refinery that supplies most of Berlin’s fuel, four people close to the matter said, fearing retaliation by Moscow if the site is nationalised and as Western firms hesitate to step in.

The PCK refinery in Schwedt, majority-owned by Russian oil giant Rosneft, is testing Germany’s resolve to eliminate imports of oil from Russia by the end of the year under fresh European sanctions to punish Moscow for its invasion of Ukraine.

The landlocked refinery is the source of 90% of Berlin’s fuel and has received all its crude from Russia via the Druzhba pipeline since the plant was built in the 1960s.

One solution considered by Germany has been to temporarily hand control of the refinery’s day-to-day operations to British oil major Shell, which owns a 37.5% stake in Schwedt, according to government and company sources.

via Reuters