Germany is set to extend its trusteeship over local subsidiaries of Russia’s state oil giant Rosneft PJSC for a fifth time as a sale to Qatar’s sovereign wealth fund remains in limbo.
A spokesperson for the German economy ministry confirmed efforts to extend the trusteeship when contacted by Bloomberg. Rosneft has been trying to sell its German units — Rosneft Deutschland GmbH and RN Refining & Marketing GmbH — after Berlin seized the entities following Russia’s invasion of Ukraine.
The Qatar Investment Authority — which already owns a stake of roughly 19 percent in state-controlled Rosneft — is the only remaining bidder for the companies, and appointed advisers for the acquisition last year.
But Qatari wariness around Germany’s economic environment and post-election investment landscape have held up finalizing the transaction, according to people familiar with the matter, who asked not to be identified as the conversations are private. The spokesperson for the economy ministry said that there were no political impediments to a sale.
The Rosneft units have shares in three refineries in Germany, including the PCK Raffinerie GmbH in Schwedt near Berlin, which was cut off from Russian crude supplies two years ago and has not been working at full capacity since.
The delay of the deal means that uncertainty over the ownership of the oil assets will continue. The temporary trusteeship — which must be renewed every six months — will expire on March 10 and be prolonged until September.
The German economy ministry spokesperson said the government is not a party to the contract and isn’t involved in negotiations. Rosneft Deutschland declined to comment, and the Qatari wealth fund also declined to comment.
“With regard to Rosneft Deutschland, I expect the Russian owners to conclude the sale quickly,” Michael Kellner, a parliamentary state secretary in the economy ministry, said in a statement after meeting stakeholders in Schwedt on Wednesday.
Source: By Petra Sorge & Kamil Kowalcze from Rigzone.com