FRANKFURT, Feb 20 (Reuters) - The European Commission on Friday said it had approved the "acquisition of sole control" of Rosneft's German assets by the German economy ministry. A spokesperson for the
EU Approves Berlin's Extended Control Over Rosneft's German Holdings
FRANKFURT/BRUSSELS, Feb 20 (Reuters) - The European Commission on Friday approved a new trusteeship structure that establishes Berlin's long-term control over the German assets of Russian oil group Rosneft, part of efforts to find a structural solution for the business.
The assets, which include stakes in the PCK Schwedt, MiRo and Bayernoil refineries, were placed in the German government's trusteeship in 2022 after Moscow's invasion of Ukraine rocked Germany's decades-long energy ties with Russia.
Energy Security and Trusteeship Renewal
The trusteeship has to be renewed every six months on grounds of preserving energy security, regularly creating uncertainty mainly over the PCK Schwedt refinery, which supplies most of the fuel to Berlin.
The current trusteeship expires on March 10.
"The transaction examined by the Commission under merger control rules relates to a new indefinite trusteeship over the German Rosneft entities, under national law," a Commission spokesperson said.
Impact on Shareholder Rights
"Under the new trusteeship, the shareholders of the German Rosneft entities are barred from exercising their voting rights for the duration of the trusteeship."
Friday's decision essentially removes one regulatory hurdle to keep PCK Schwedt running under German control while majority ownership stays with Rosneft, a carefully designed structure aimed at avoiding expropriation and possible related lawsuits.
It does, however, not address the issue of U.S. sanctions on Rosneft as part of Washington's effort to squeeze Russia's energy sector, with Berlin last year securing an exemption for PCK Schwedt that expires on April 29.
Challenges from U.S. Sanctions
Last month, management at the refinery privately warned Berlin that U.S. sanctions were hurting its business and threatening fuel supply for the country's capital and the region, according to correspondence seen by Reuters.
(Reporting by Christoph Steitz, Foo Yun Chee and Christian Kraemer, additional reporting by Olesya Astakhova, editing by Ludwig Burger and Thomas Seythal)
