Russia Halts Oil Flows to Germany as Berlin Seizes Rosneft Assets

It is likely that a long-overdue decision has been made in the Kremlin to stop oil supplies to the refinery in Schwedt, which Germany seized from Rosneft. Russia Stops Pumping Kazakh Oil to Germany The decision to nationalize the Russian stake (54%) in the refinery in Schwedt (Brandenburg) was made in the autumn of 2022, and the process has been completed. Germany was granted "indefinite trusteeship” not only over Rosneft's oil refining and petrochemical assets, but also over its wholesale oil and petroleum product trading structures, which, in terms of consequences and with the approval of EU regulators, is equivalent to expropriation. Berlin could have refrained from accelerating this decision, as the United States has consistently extended exemptions for Rosneft from sanctions. Currently, the option of reselling Rosneft's nationalized stake to a new investor is being considered. Kazakhstan is mentioned among the potential buyers, as it supplies 20% of the oil to the Schwedt refinery via the Druzhba pipeline.