The German federal government is negotiating with the U.S. Treasury Department for an extension of the production license that allows the PCK refinery in Schwedt, near the Oder River, to operate. This information comes from the newspaper “Welt am Sonntag”.
The refinery supplies more than 90 % of the fuel needs for Berlin and Brandenburg. Because it is owned by the Russian state company Rosneft, the plant is subject to U.S. economic sanctions. An exception to the sanctions, issued by the Office of Foreign Assets Control (OFAC) – a subdivision of the U.S. Treasury – is set to expire on 29 April. Without a renewal of the OFAC general license, the refinery could cease operations on 1 May. While Rosneft Deutschland’s refinery is owned by the Russian parent, it is currently being administered in trust by the Bundesnetzagentur.
According to the company, the looming expiration of the U.S. license is already disrupting day‑to‑day operations. A letter from PCK’s management, reported by “Welt am Sonntag”, warned the German Federal Ministry of Economic Affairs that the situation is “dramatic”.
A spokesperson for the Ministry of Economic Affairs told the paper that the government maintains a very close and constructive dialogue with the relevant U.S. authorities regarding the sanctions. The spokesperson added that the federal government still believes the U.S. sanctions are not intended to target these German subsidiaries that are legally separated from the Russian parent.