Reuters: Germany weighs nationalisation of Rosneft assets after US sanctions

Germany is exploring the possibility of nationalizing the local assets of Russia’s state oil company Rosneft and subsequently selling them to a foreign investor, following new U.S. sanctions imposed on the energy giant.

Berlin’s priority remains securing a permanent exemption for Rosneft’s German subsidiary from U.S. sanctions. However, officials are also weighing nationalization as an alternative scenario, with the eventual goal of transferring ownership to a non-Russian investor, Reuters reports, citing sources.

The U.S. Treasury Department earlier announced that it had issued a license exempting Rosneft’s German unit from American sanctions until April 2026.

A spokesperson for Germany’s Ministry for Economic Affairs said the government has maintained “very intensive” contact with U.S. authorities and described the license as “a first step.” He added that talks are ongoing to secure an extension of the exemption beyond April next year.

So far, Berlin has refrained from taking control of Rosneft’s local assets due to concerns that such a move could require financial compensation to Moscow.

Reuters noted that German companies with plants and other investments in Russia could face severe retaliation from the Kremlin if Berlin proceeds with nationalisation.

Michael Kellner, a Green Party lawmaker in Germany's parliament, said that Qatar and Kazakhstan had signalled interest in buying it in 2024.

It is unclear, however, whether those countries were still interested.

Germany used to buy oil directly from Russia. Rosneft in Germany now buys oil from Kazakhstan. However, Russia controls the pipeline used to deliver it.