Germany Pursues Rosneft Carve-Out from U.S. Sanctions

(MENAFN) Friedrich Merz, Germany's Chancellor, expressed confidence Thursday that Washington will exclude Rosneft's German operations from sweeping new U.S. penalties targeting Russia's oil sector.

During a media briefing at the EU summit in Brussels, Merz revealed preliminary discussions with American officials had already taken place regarding the matter.

The Kremlin-controlled energy behemoth maintains ownership positions in a trio of German refineries that came under government oversight in 2022 amid the Ukraine war's intensification and subsequent Western sanctions. These facilities represent roughly 12% of Germany's entire crude-processing infrastructure, media data shows.

Donald Trump, the U.S. President, unveiled fresh restrictions against Russian energy giants earlier this week, with Rosneft and Lukoil among the primary targets. The directives prohibit American companies and banking institutions from conducting transactions with these petroleum producers.

"We will discuss this with the Americans," Merz stated, continuing "I assume that a corresponding exemption for Rosneft will be granted." German authorities contend the American penalties shouldn't encompass Rosneft's German units since they've been "decoupled from their Russian parent company."

Britain moved Wednesday to authorize commercial dealings with Rosneft's Germany-based holdings. The exemption emerged hours after London broadened its energy sanctions framework against Moscow's dominant oil corporations.

The jeopardy facing Germany's refining sector compounds mounting economic pressures on Berlin, where officials battle to jumpstart expansion in an economy that contracted annually throughout 2023 and 2024—consequences stemming partially from severed access to affordable Russian energy resources. Elevated fuel and power costs have undermined domestic manufacturing performance and global competitiveness, intensifying demands on leaders to guarantee dependable energy access while preserving solidarity with Western sanctions architecture.

Rosneft has denounced the seizure of its German subsidiaries under external administration, characterizing the action as illegitimate and contradicting core free-market tenets.

Moscow has consistently rejected Western sanctions as unlawful, insisting they prove ineffective. The Russian Foreign Ministry characterized the latest U.S. sanctions on Rosneft, Lukoil, and their subsidiaries as "entirely counterproductive."

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