US sets Berlin a deadline to resolve German Rosneft issue – Bloomberg

Washington has set a six-month deadline for Berlin to resolve the issue of ownership of the German assets of the major Russian oil company Rosneft, which will temporarily exempt them from new US sanctions, reports Bloomberg agency, citing informed interlocutors.

According to them, the US presidential administration of Donald Trump has informed its German counterparts that it is considering granting a limited general license, which cannot be renewed, to Rosneft Deutschland.

German officials are evaluating the idea and will provide a response in the coming days, the interlocutors said.

One of them noted that German minister of economy Katherina Reiche intends to discuss this topic at a meeting of the Group of Seven (G7) energy and environment ministers to be held this week in Toronto, Canada.

While this agreement will reduce the risk of sanctions disrupting German refineries in the near future, it also increases pressure on Berlin to develop a workable ownership structure that excludes Russia after the expiration of the asset trust in March 2026.

After Russia's full-scale invasion of Ukraine in 2022, the German government placed Rosneft's local assets under temporary trust management and has since extended the term several times. Although Berlin agreed with Moscow to sell the company's German units, negotiations with Qatar ultimately failed as the parties could not agree on a price.

Rosneft Deutschland owns a stake in three German refineries, which account for 12% of the country's total refining capacity, and the company also has a stake in the Transalpine oil pipeline.

Berlin has so far refrained from nationalizing companies because of fears that such a move could lead to retaliatory measures by the Kremlin against German activities in Russia.

There is also a risk of disruption of supplies to PCK Raffinerie GmbH, in which Rosneft Deutschland also owns shares, as oil from Kazakhstan is supplied to this refinery by Druzhba pipeline, which passes through Russian territory.

The Ministry of Economy said it was in contact with the relevant US agencies and was seeking to clarify all legal issues as soon as possible, but it declined to comment on the details of the talks.

Rosneft Deutschland declined to comment, and the US Treasury did not respond to the request.

Without a U.S. license, Rosneft's German unit risks losing key customers starting November 21.

• On October 24, German chancellor Merz expressed optimism that the United States will exempt Rosneft's German unit from Washington's latest sanctions against Moscow.
• On October 28, Lukoil, another Russian company subject to new US restrictions, announced its intention to sell its international assets and began consideration of applications from potential buyers.