Berlin Weighs Rosneft Nationalization After New U.S. Sanctions

The German government is reportedly considering nationalizing the assets of Rosneft Deutschland following a new wave of U.S. sanctions targeting Russian energy companies. The move would mark one of Berlin’s most decisive steps yet to secure its energy independence and protect the country’s refining capacity.

Germany’s Rosneft Assets Caught in U.S. Sanctions

The sanctions, announced by the U.S. administration under President Donald Trump, have reignited debate within Germany about how to handle Rosneft’s remaining operations in the country. Although Rosneft Deutschland has been under temporary trusteeship since 2022, it remains formally owned by the Russian state-controlled oil giant Rosneft PJSC.

Washington’s latest sanctions prohibit business with companies that are more than 50 percent Russian-owned, creating immediate uncertainty for Rosneft’s German subsidiaries. Several oil traders, banks, and energy clients have reportedly suspended cooperation, fearing legal and financial consequences. Without an exemption from the U.S. Treasury, Rosneft Deutschland risks being cut off from crucial contracts after November 21, 2025.

In response, Berlin has intensified negotiations with Washington. The U.S. Treasury Department has granted a temporary general license allowing transactions with Rosneft Deutschland and its affiliate RN Refining & Marketing GmbH until April 29, 2026. During this period, both governments are expected to work toward a permanent solution.

Pressure Mounts on Merz Government to Act

Inside Germany, calls are growing for Chancellor Friedrich Merz’s administration to take decisive action. Green Party energy expert Michael Kellner, who previously served in the Economics Ministry, urged the government to move from temporary trusteeship to full nationalization. He criticized the repeated six-month extensions as creating uncertainty for both workers and energy suppliers.

“The government must make a clear decision,” Kellner said, arguing that continued hesitation threatens energy stability in eastern Germany. The PCK refinery in Schwedt, one of the Rosneft-controlled facilities, supplies nearly 90 percent of the fuel used in Berlin and Brandenburg and remains critical for aviation fuel deliveries to the capital’s main airport, BER.

The Merz government has so far preferred to seek diplomatic and legal exemptions from the sanctions rather than risk retaliatory measures from Moscow. Russian media have claimed that Rosneft’s assets in Germany could be worth up to seven billion dollars, raising concerns about possible compensation claims if a nationalization occurs.

A Strategic Asset for Germany’s Energy Security

Rosneft Deutschland currently holds shares in three key refineries: PCK in Schwedt, MiRo in Karlsruhe, and Bayernoil in Neustadt an der Donau. Combined, these plants represent around 12 percent of Germany’s total refining capacity. The facilities are vital for national energy security, especially since Russian crude imports were halted following Moscow’s invasion of Ukraine in 2022.

Since then, the German government has managed Rosneft’s domestic assets through the Federal Network Agency. The trusteeship arrangement was originally meant as a temporary solution to prevent operational collapse while maintaining stable fuel supplies. However, with each six-month renewal, the question of a permanent solution becomes more urgent.

Energy experts warn that continued uncertainty could weaken investor confidence and disrupt regional fuel supply chains. The government fears that if the refineries lose access to global financing and suppliers due to sanctions, the impact could extend beyond the energy sector, affecting logistics and aviation.

U.S.–Germany Negotiations Intensify

The U.S. sanctions have placed Berlin in a difficult position—caught between maintaining compliance with international restrictions and safeguarding domestic energy security. According to sources cited by Reuters and Bloomberg, the preferred German strategy remains negotiating a lasting exemption similar to the arrangement reached by the United Kingdom earlier this year. London secured a special clause that allows certain operations involving Rosneft subsidiaries to continue under strict monitoring.

Germany’s Economics Minister Katherina Reiche confirmed that her ministry is working closely with U.S. authorities to secure a “legally sound and permanent clarification.” Reiche is expected to raise the issue again at the upcoming G7 energy summit in Toronto. For now, the temporary license provides limited breathing room for Rosneft Deutschland and its business partners.

The United States, however, has reportedly made clear that the extension will not be renewed indefinitely. American officials want Germany to finalize the ownership status of Rosneft’s assets and prevent any indirect benefit to the Russian state.

Balancing Politics, Law, and Diplomacy

Nationalizing Rosneft Deutschland would not be without consequences. Legal experts caution that such a move could trigger multi-billion-euro lawsuits from Moscow, testing Germany’s commitment to the rule of law in complex geopolitical circumstances. On the other hand, allowing indefinite trusteeship risks undermining confidence in Berlin’s ability to manage critical infrastructure independently.

Some officials believe that a sale to an investor from a neutral or allied country—possibly Qatar or Kazakhstan, both of which expressed interest in 2024—could offer a compromise solution. It remains unclear, however, whether those countries would still be willing to purchase under the current sanctions regime.

For now, Germany is balancing between protecting its energy security and upholding its commitments to Western allies. The outcome of these discussions could define not only the future of Rosneft Deutschland but also Berlin’s approach to strategic economic assets tied to adversarial states.

A Decisive Moment for Germany’s Energy Policy

The debate over Rosneft’s future has revived broader questions about Germany’s long-term energy strategy. Since cutting its dependency on Russian oil and gas, Berlin has sought to diversify imports, expand refinery capacity, and invest in renewable energy infrastructure. But the lingering presence of Rosneft assets highlights the challenges of fully decoupling from Russian influence.

If nationalization proceeds, it would mark a turning point in Germany’s post-Ukraine energy policy—an assertion of economic sovereignty and a signal of commitment to allied sanctions. Conversely, a failure to resolve the issue before the U.S. license expires could expose Germany to fuel shortages and renewed geopolitical pressure.

The coming months will be decisive as Berlin seeks a balance between legal caution, political necessity, and the realities of global energy interdependence.