Federal Network Agency Extends Trusteeship Over Rosneft Germany Subsidiaries

The German subsidiaries of the Russian energy group Rosneft will continue to be managed under the trusteeship of the Federal Network Agency. The decision, announced by the Federal Ministry for Economic Affairs, follows the implementation of a new legal framework allowing the German government to maintain direct supervision over Rosneft Deutschland GmbH and RN Refining & Marketing GmbH. This arrangement covers the companies' shares in three major oil refineries: PCK Schwedt in Brandenburg, MiRo in Karlsruhe, and Bayernoil in Vohburg, Bavaria.

Rosneft Deutschland controls approximately 13 percent of Germany's total crude oil processing capacity. The ongoing trusteeship is intended to secure a stable supply of petroleum products, particularly for the states of Berlin and Brandenburg, as well as to safeguard operations at the Schwedt refinery. This measure aims to ensure the continued functioning of critical energy infrastructure in Germany.

The background to this extended trusteeship lies in the European Union's sanctions regime targeting Russian state-owned entities following the conflict in Ukraine. In 2022, the German government placed the local Rosneft subsidiaries under trusteeship to shield them from the direct influence of their Russian parent company and to prevent any disruptions to the German energy market. The move also accompanied a broader strategy to reduce Germany's reliance on Russian pipeline oil, a supply source that had been central to the PCK refinery for decades.

Recently, the European Commission granted approval for the German government to retain long-term control over Rosneft Deutschland, concluding that there are no competition concerns associated with this intervention. The legal authority for the trusteeship is based on an amendment to Germany's Foreign Trade and Payments Act, introduced in response to the EU's 18th sanctions package against Russia, which was adopted in July 2025. Without such a publicly mandated trusteeship, subsidiaries of sanctioned Russian companies operating in the EU would also have been subject to the same sanctions as their parent entities, potentially jeopardizing their operations.

The trusteeship arrangement has thus far been extended in six-month increments, with the most recent extension set to expire in March. With the latest legal changes, the government is now empowered to maintain this oversight for an indefinite period, thereby ensuring continuity in energy supply and the protection of Germany's strategic assets.

Rosneft's German operations play a pivotal role in the country's energy sector, particularly in the refining of crude oil and distribution of petroleum products. The trusteeship ensures that these activities remain insulated from potential external pressures resulting from international sanctions or geopolitical developments. The Federal Network Agency, acting as the trustee, is responsible for overseeing the business activities of the subsidiaries, managing their assets, and making operational decisions to guarantee compliance with both German and EU law.

This regulatory intervention reflects Germany's broader efforts to secure its energy supply amid geopolitical uncertainties and to comply with evolving EU sanctions. The trusteeship is considered a key component in maintaining market stability and protecting national interests in the energy sector.