Oil Ministry Prohibits Compulsory Sale
In the northeastern region of Brandenburg, the PCK oil refinery continues to be a significant employer, with around 1,200 people relying on it for their livelihoods. The refinery, majority-owned by the Russian state-owned company Rosneft, has been at the centre of ongoing developments regarding its ownership.
The Federal Ministry of Economics has been actively pursuing the expansion of the oil pipeline from Rostock to Schwedt, with 400 million euros in state aid planned for the project under the previous federal government. However, EU Commission approval for this aid is yet to be granted.
A taskforce, established in 2022 to secure the future of the PCK refinery, met recently at the state chancellery in Potsdam. State secretary Wetzel from the economically led federal ministry was present for the first time. In a bid to maintain jobs and ensure fuel supply, the ministry has assured the refinery that it will work towards a long-term perspective.
Shell, which held a 37.5% stake in the refinery alongside Rosneft, has been in advanced talks to sell its share. The UK-based Prax Group, which owns other oil assets such as the Lindsey refinery in the UK, was the potential purchaser. However, Prax Group recently went into insolvency, casting uncertainty on its ability to take over or continue the refinery’s operations through Shell’s shareholding.
Rosneft still owns a majority share since last year, but the refinery’s ownership is in flux with Shell selling its shares and American investors reportedly exploring options to buy Rosneft's stake. This situation has direct implications on regional energy security, job stability, and the refinery’s operational future amid geopolitical tensions between Russia and the West.
In a move to stabilise the situation, the federal government has taken control of Rosneft shares through a trustee administration. However, the EU Commission has not issued approval due to arguments regarding ownership, specifically with the Russian oil company Rosneft. State Secretary Wetzel stated that with the trustee solution, the company can continue to operate and "worse can be avoided."
Despite the ongoing uncertainty, State Secretary Wetzel stated that the situation is not satisfactory and that they wish for a sale, but it's in the hands of the owner. The future of the PCK refinery in Schwedt remains uncertain, but efforts are being made to ensure its long-term viability and stability.
The Federal Ministry of Economics aims to secure the refinery's future by pursuing potential buyers for Shell's stake, as a change in ownership could influence the industry and finance sectors, especially in the context of ongoing geopolitical tensions. Meanwhile, the energy sector in Brandenburg faces instability due to the fluid situation at the PCK refinery, potentially affecting regional energy security and job stability.
