Germany wants to negotiate with Poland and Kazakhstan on oil supplies

BERLIN, Sep 16 – PRIME. Germany will continue negotiations with Poland on the terms of oil supplies via Gdansk to Schwedt, as well as with Kazakhstan on the purchase of Kazakh oil via the Druzhba pipeline in order to provide additional volumes for the PCK refinery in Schwedt as early as 2022, the German government said.

“The federal government will also continue negotiations with the Polish government on the framework conditions for the supply of oil via Gdansk to Schwedt with high priority. The same applies to the negotiations of the federal government with the government of Kazakhstan on the purchase of Kazakh oil through the Druzhba pipeline in order to provide additional volumes for refineries PCK already this year. The full supply of crude oil to PCK remains an urgent task of the federal government.

However, it is clarified that in order to achieve these goals, a guardianship management is also necessary.

In addition, the federal government considers itself, as well as the shareholders of the refinery in Schwedt, an obligation “to ensure employment through appropriate measures and to avoid layoffs caused by work stoppages.”

“The current collective agreement will continue to operate. For 2023, the federal government intends to support the workers of the RSK refinery, whose working hours have been reduced due to the EU embargo on the import of Russian crude oil, with a subsidy for the payment of benefits,” the Cabinet said.

Earlier, the German Ministry of Economy and Climate Protection announced that the German Cabinet had transferred Rosneft’s subsidiaries – Rosneft Deutschland and RN Refining & Marketing – under the control of the Federal Network Agency. The agency thus gained control of Rosneft Deutschland and a corresponding stake in three refineries, PCK Schwedt, MiRo and Bayernoil.

The agency explained that the reason for the introduction of trusteeship over Rosneft Deutschland and RN Refining & Marketing was the market situation that has developed due to their close ties with Russia.

The refinery of PCK Raffinerie GmbH is located in the German city of Schwedt. The location of the refinery makes it possible to supply Urals oil via the Druzhba pipeline. The plant’s capacity is 11.6 million tons per year (the current share of Rosneft in the plant’s capacity is 6.3 million tons per year), the Nelson index is 9.8. Shareholders: Rosneft – 54.17%, Shell – 37.5%, Eni – 8.33%.