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Germany has taken over 3 Russian-owned oil refineries, as tensions between Moscow and the European Union reach new heights. Berlin has been racing to save energy and protect its supplies, as fears mount that Russian President Vladimir Putin could absolutely cut off fuel. it flows through this winter. Germany’s energy regulator is about to acquire stakes in the Schwedt, Karlsruhe and Vohburg oil refineries, which together account for about 12% of the country’s oil processing capacity.
According to a statement from the Berlin Economy Ministry, the government has placed a unit of Rosneft, a Russian oil company, under the supervision of the industry regulator and has taken over the Schwedt refinery, which is guilty of supplying 90% of Berlin’s fuel.
The ministry said, “With the guardianship, the risk to the safety of the energy source is countered and a cornerstone is laid for the preservation and long-termness of the Schwedt site. “
German Chancellor Olaf Scholz said the resolution to take over Rosneft’s oil refineries has freed Germany from its dependence on Russia, after loading only about 40% of its fuel from Moscow last year.
He told reporters: “We become independent of Russia and everything done there. “
As part of a comprehensive package, Mr Scholz’s government has set aside around €1 billion (£880 million) for Schwedt, which also includes aid to the region.
The move to capture Russian assets is likely to anger the Kremlin, however, the chancellor said Germany is ready for a scenario in which Putin would retaliate by cutting off oil deliveries to the country.
Tensions between Russia and Germany have escalated over the past month over power supplies, after Gazprom, the state-backed Russian electricity giant, suspended fuel supply through the Nord Stream 1 pipeline to Germany “indefinitely. “
Gazprom claimed that the closure was due to a leak found in the pipeline, the source was cut off following the G7 resolution to impose a value cap on Russian oil. Experts have accused Putin of militarizing the pipeline.
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The EU has been turning to its electric power suppliers and securing more fuel deliveries as it seeks to end its dependence on Russia over its invasion of Ukraine.
In response, Moscow reduced fuel flows and even threatened to turn off all taps, raising costs and expanding the possibility of winter energy rationing in Europe.
Earlier this month, Putin opposed a measure proposed by the EU to impose a value cap on Russian fuel imports, threatening to “freeze Europe” by blocking all flows.
Rosneft Deutschland, majority-owned through the Russian oil company, is under the supervision of the Federal Network Agency regulator.
The regulator added that Rosneft no longer has the strength to control the site, which accounts for about 12% of Germany’s oil processing capacity.
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Meanwhile, resources told Reuters that Polish refiner PKN Orlen has expressed interest in acquiring a majority stake in the Schwedt site, which is Germany’s fourth-largest refinery and also parts of western Poland.
London-based Shell, which has a 37. 5% stake in the refinery, has been looking to sell it for some time and said on Friday it was “not affected” by Germany’s decision to take over the refinery.
Germany will now look for select suppliers for the refinery, given that it receives all its crude oil from Russia.
Following EU sanctions, Berlin pledged to end Moscow’s oil imports by the end of the year.