German Greens Demand Tougher Sanctions and Asset Seizure of Russian Oil Company in Germany
The German Greens are urging Chancellor Friedrich Merz to take a stronger stance in the Ukraine conflict by imposing harsher sanctions on Russia and seizing the assets of the Russian oil company, Rosneft, in Germany.
According to Michael Kellner, the energy policy spokesperson for the Greens, the German government should take action and expropriate Rosneft’s assets in the country. Rosneft, a company with ties to Russian President Vladimir Putin, still has investments in Germany, including a majority stake in the Schwedt refinery in eastern Germany, as well as smaller stakes in refineries in Baden-Württemberg and Bavaria.
Although the company’s assets are under the control of the federal government since September 2022 and any profits do not go to Russia, Kellner believes it is time for a more decisive move. “It would be a clear signal to Putin and a slap in the face of our friends in Europe” he said. This is particularly the case for the PCK refinery in Schwedt, where Kellner thinks it is time to create clear circumstances and expropriate Rosneft. “This would at the same time offer security to the refinery’s employees” he added.
Rosneft could potentially sue the government for expropriation and the state would need to compensate the company. However, Kellner believes this is justifiable, as the purchase price would go into a trust account and only be transferred to Moscow once the war is over and the sanctions are lifted. The opportunity is favorable, as the trust arrangement must be extended repeatedly, with the next extension due this autumn.
Rosneft is not currently suing, but could do so at any time. If the war were to end, the energy giant could resume its business in Germany, but Kellner wants to prevent this. The German government, he said, should put pressure on the EU to ensure Rosneft loses its assets in Germany. The 18th sanctions package, which Brussels has yet to agree on, would be the right place to make this a reality, according to Kellner. If necessary, the Greens would even go it alone, he added. It would fit the EU Commission’s announcement of making Europe completely independent of Russia in the energy sector.