Germany grabs Russian-owned oil refiner to help secure winter fuel     

“Over the next few months, we’ll have to continue to preserve critical infrastructure in order to achieve energy independence,” said Verena Hubertz, a leading lawmaker for Olaf Scholz’s Social Democrats.

Germany seized the local unit of Russian oil major Rosneft as Berlin moves to take sweeping control of its energy industry, secure supplies and sever decades of deep dependence on Moscow for fuel.

Alongside its move for the Rosneft unit, Chancellor Olaf Scholz’s administration is in advanced talks to take over Uniper and two other major gas importers. 

Germany is pressing ahead with an historic overhaul of its economy just two-and-a-half years after the Covid-19 pandemic, grabbing control over a huge chunk of its industrial base to prevent shortages and blackouts this winter. A decision on the next moves could come within days. 

The need for action is urgent with Uniper losing €100m a day as it tries to replace Russian gas to maintain deliveries to local utilities and manufacturers. 

“Over the next few months, we’ll have to continue to preserve critical infrastructure in order to achieve energy independence,” said Verena Hubertz, a leading lawmaker for Mr Scholz’s Social Democrats. “Further measures will follow.” 

Germany has been particularly hard hit by the economic stand-off with the Kremlin because of its reliance on Russian gas and oil. Sanctions and Moscow’s efforts to punish Europe economically for its support of Ukraine risk tipping Germany into recession. 

Its energy sector is reeling from the squeeze on supplies, and government bail-outs are quickly being dwarfed by the scale of the crisis.

The move on Rosneft’s German unit, including stakes in three oil refineries, also affects holdings in France, Italy and Austria, highlighting how interconnected Europe’s energy system is. 

Bloomberg