By Shadia Nasralla and Christoph Steitz LONDON/FRANKFURT, March 19 (Reuters) - Investment firm Klesch Group has looked at buying the Russian-owned PCK Schwedt refinery in Germany, its chairman said on
Klesch Group Examines PCK Schwedt Refinery Acquisition, Faces Legal Hurdles
Overview of the PCK Schwedt Refinery Situation
By Shadia Nasralla and Christoph Steitz
Background of the Refinery Ownership
LONDON/FRANKFURT, March 19 (Reuters) - Investment firm Klesch Group has looked at buying the Russian-owned PCK Schwedt refinery in Germany, its chairman said on Thursday, pouring cold water on any hopes for a deal as he added that the legal situation around the asset was complicated.
Schwedt is majority-owned by Rosneft but the refinery has been put under the control of the German government as a result of the Ukraine war and severed energy ties with Moscow.
Stakeholders and Ownership Structure
Co-owner Shell has been looking for a buyer for its 37.5% stake, efforts that have so far not resulted in a deal. Italy's ENI also owns a stake.
Klesch Group’s Perspective on the Acquisition
Interest in the Schwedt Refinery
"We have been looking at that (Schwedt) for some considerable period of time," A. Gary Klesch told Reuters in an interview following an agreement to buy BP's German oil refinery site in Gelsenkirchen.
Acquisition Conditions and Complications
"We would only buy control. And I'm well aware of the minority interests. We've been contacted on those," Klesch said. "It's a very complicated situation."
Legal and Geopolitical Risks
Klesch said that there was a risk hanging over Russian assets in the sense that they could become part of potential peace deals should the Ukraine war end, making their future uncertain.
(Reporting by Shadia Nasralla and Christoph Steitz; Editing by Kirsten Donovan)
