Germany Confirms Rosneft Subsidiaries Unscathed by U.S. Sanctions

U.S. sanctions aimed at Rosneft will not impact the company’s German subsidiaries, which came under state control following Russia’s invasion of Ukraine, according to a statement from the German government to AFP on Tuesday.

A spokesperson from the economy ministry noted, “We have received confirmations from the appropriate U.S. authorities indicating that the sanctions are not designed to affect Rosneft’s German subsidiaries.”

He added that “business activities with these subsidiaries can proceed.”

The U.S. administration has supplied documentation that provides these assurances, and Berlin anticipates “further clarifications that will ensure legal certainty,” he mentioned.

The spokesperson emphasized that Rosneft’s operations in Germany “are independent from the Russian parent company.”

“As a result, their operations cannot be governed from Russia and they do not contribute revenue to the Russian parent company or the Russian government.”

Last week, U.S. President Donald Trump announced sanctions against Rosneft and another major Russian oil company, Lukoil, expressing frustration over the lack of progress in talks with President Vladimir Putin to resolve the Ukraine conflict.

In response to Russia’s full-scale invasion of Ukraine, the German government seized Rosneft’s assets in Germany and placed them under the oversight of the federal energy regulator in September 2022.

Initially, this action was regarded as temporary while discussions with Moscow to divest the assets were taking place, but those negotiations have yet to yield results.

Rosneft continues to hold stakes in three refineries in Germany, including the significant PCK facility located near Berlin.