Philip Boyko17:21, 04.03.26
The United States has indefinitely exempted Rosneft’s German assets from sanctions, which will relieve the burden on Germany’s energy sector.
The United States has indefinitely exempted the German assets of Russian oil company Rosneft from sanctions against Russia , a diplomatic victory for the German government after months of intense negotiations with Washington, Bloomberg reports .
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) plans to announce a decision on Friday, although the timing could change, the agency was told by a source familiar with the confidential discussions.
Germany found itself in a difficult situation when Berlin began to impose sanctions against Russia over a full-scale invasion of Ukraine in 2022. At the same time, Germany did not completely confiscate Rosneft’s assets, but the government of Olaf Scholz introduced a “trust management”. The state controls the plants, but Moscow remains the owner, which created a legal vacuum.
When the US imposed sanctions on the parent company in Russia, its German subsidiary came under attack. Banks refused to make payments and insurers canceled contracts.
However, Berlin is hesitant to fully nationalize the company, fearing a harsh response from Moscow. And the Kremlin has repeatedly hinted that German business in Russia is under threat.
Therefore, Germany chose the path of “freezing”, which turned out to be too expensive without permission from the United States.
Why the US dictates conditions for Rosneft in Germany
Everything rests on the system of secondary sanctions from the US. Almost all international payments for oil go through the American banking system, and if the US Treasury Department’s Office of Foreign Assets Control (OFAC) blacklists a company, it becomes toxic to the entire world.
No international company agrees to transport oil for Rosneft’s refineries without guarantees from the US, and the ships simply won’t be insured. Banks are blocking all transactions, fearing Washington’s wrath. It’s also impossible to repair refineries: spare parts are often of American origin or have patents.
So, legally, Berlin can operate sanctioned Russian factories on its territory, but in fact it has no access to the world market without the consent of the White House. Washington set deadlines to force Germany to sever ties with the Kremlin completely, but Germany did not have time to find buyers.
Why the White House made concessions to the German government
The Middle East crisis has changed the rules of the game, and now the US is forced to loosen its grip. On Friday, March 6, it may give Germany a “work permit” to avoid provoking a spike in gas prices in Europe.
Rosneft Deutschland is a huge oil refining giant, accounting for 12% of all German refining capacity. This includes the strategic plant in Schwedt, which supplies fuel to the German capital. The company also has a stake in the Transalpine Oil Pipeline.
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