16 September 2022
The decision of the Federal Government of the Federal Republic of Germany on putting the Company's German assets under external management of the Federal Network Agency is unfortunately not a surprise for us and follows the logic of the algorithm of actions regarding Russian enterprises in Germany that was imposed by the USA.
This decision is illegal and, in essence, is an expropriation of equity assets following the situation intentionally created by relevant sanctions of the European Union and actions of German and Polish regulators with the aim of seizing the assets.
Rosneft sees this as a violation of all fundamental principles of market economy and civilizational foundations of modern society built on the principle of inviolability of private property.
The Company followed all requirements of German regulators, the fact that they repeatedly admitted, transparently and openly operated at the market providing access to fuel for consumers. Despite the ongoing complex situation at the energy market of the Federal Republic of Germany, Rosneft Deutschland continued to fulfil its obligations on supplying oil products in full and was in talks on the new contracts necessary for ensuring security of supply, particularly in the Berlin-Brandenburg region and Western Poland.
Rosneft's total investments in refining projects in Germany amounted to 4.6 bln euro. Additional investment was planned due to the increase of the Company's equity share in РСК and transition to production of biofuel.
Rosneft also had plans for further development of production and infrastructure at the refineries. Investment programs envisioned implementation of «green» projects and projects in petrochemistry and energy industries. Among them were the program to increase energy efficiency and decrease emissions of greenhouse gases, a number of major projects on cleaning waste water and subsoil water at PCK, MiRO and Bayernoil refineries, a project to produce «green» hydrogen with the use of renewables (for subsequent production of motor and aviation fuel), projects to produce synthetic motor fuel.
The Company understands that the decision made by the Federal Government of the Federal Republic of Germany is not temporary and is, in essence, tantamount to irretrievable loss of assets. Rosneft will consider all possible measures to protect its shareholders, including legal action.
The Company regrets that our consumers and employees at our enterprises, with whom we've forged not just business connections but also cordial personal ones over the years of work, are facing this situation.
The Company declares that in light of the decision of the Federal Government of the Federal Republic of Germany it is no longer able to provide health, safety and environment management at the refinery.
In addition to that, due to the unilateral decision to replace the head of the executive body and on account of force-majeure circumstances envisaged by existing internal contract between Rosneft Oil Company PJSC and Rosneft Deutschland GmbH, the latter is subject to renewal with the person, designated by the government of the Federal Republic of Germany. The Company is ready to discuss possible parameters of a new contract on condition of guarantees for payment for raw materials supplied, for protection of investments (in the interests of the Company's shareholders) and legal rights of the enterprises' personnel.
Rosneft press release