German Schwedt refinery to receive oil via Poland despite Russia’s Rosneft still being a shareholder

The previous conservative Polish government declared that they would not supply oil to Schwedt as long as Rosneft is the majority owner of the plant, but the current left-liberal government sees no major issues, as confirmed during Polish-German consultations in Warsaw this week

By Grzegorz Adamczyk
3 Min Read

The Schwedt refinery in Germany near the Polish border is set to continue receiving shipments of non-Russian oil via the Gdańsk Naftoport, even without the removal of Russian influence from its operations. This decision emerged from an intergovernmental consultation held in Warsaw on July 2.

The consultation underscored a collaborative effort between Poland and Germany to foster joint initiatives in oil infrastructure and fuel supply stability. A key focus will be coordinating oil deliveries to the PCK Schwedt refinery, determining the required supply levels, and managing the refinery’s ownership status, which currently includes a significant share held by Russian oil company Rosneft.

Despite no immediate plans to divest Rosneft’s 54 percent stake in Schwedt, both nations are committed to ensuring stable oil deliveries amidst potential transit disruptions through Russia. The new Polish left-liberal authorities and German government are set to closely cooperate to safeguard the refinery’s operations and regional supply security.

The discussions also touched upon the broader implications for the oil market and fuel supplies in the region. The previous Polish conservative government demanded expropriating Rosneft’s shares in Schwedt, which are now under trustee administration by the German government. While Germany and Rosneft plan to sell the shares to a newly identified entity, Poland has advocated for a confiscation approach, similar to actions taken against Gazprom Germania, albeit with concerns over legal repercussions.

The controversy also extends to oil deliveries via the Druzhba pipeline, which runs from Russia, through Belarus and Poland, into Germany. Notably, Schwedt imports oil classified as Kazakh KEBCO oil through this route, which may physically originate from Russia. This reliance presents a revenue source for the Kremlin through transit fees and a security risk in the event of hostile actions by Russia.

Nonetheless, Poland and Germany have reiterated their commitment to reducing Russian revenue from energy exports. The plan emphasizes enhancing cooperation on energy security, particularly in securing affordable and safe oil and gas supplies in response to Russia’s aggressive war tactics and the use of energy as a weapon. This includes continued efforts to diversify energy supplies and effectively reduce Russian energy export revenues.

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