Qatar emerges as sole bidder for Rosneft's German assets

Qatar emerges as sole bidder for Rosneft’s German assets

Posted by Admin August 29, 2024 World

Rosneft holds a 54.17% share in the PCK Schwedt refinery. Credit: Piotr Swat/Shutterstock.

Qatar has emerged as the final contender for the acquisition of the German operations of Rosneft, the Russian state-controlled oil company, reported Bloomberg, citing sources.

Negotiations between Qatar and the German authorities are ongoing, with the potential purchase focusing on Rosneft’s stake in the PCK Schwedt refinery.

A Qatari delegation recently engaged in discussions at the Berlin Chancellery regarding the acquisition, the sources said.

As per the sources, the German Government is open to the sale, leaving the completion of the deal in the hands of Rosneft and the prospective Qatari buyer.

However, neither Rosneft nor the Qatari Government responded to requests for comment, and the German Economy Ministry has indicated that no final decision has been reached, the report said.

The transaction would conclude a two-year legal and regulatory dispute over Rosneft’s German entities, which were taken over by the state following Russia’s military actions in Ukraine, leading to a significant energy crisis.

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Since September 2022, the German Government has been managing these assets under temporary trusteeship, a status that has been extended several times.

The relationship between Qatar and Germany has been strengthened by an energy partnership, with Chancellor Olaf Scholz hosting the Emir of Qatar in October last year.

Qatar also maintains a positive relationship with Russia, evidenced by the Qatar Investment Authority’s approximate 19% stake in Rosneft.

Previously, India’s Reliance Industries was among the interested parties in the bidding process but has since withdrawn, as confirmed by sources.

A non-EU buyer was sought to circumvent sanctions-related financing complications.

Reliance did not comment on the matter.

Rosneft holds a 54.17% share in the PCK Schwedt refinery, which is crucial for Berlin’s fuel supply, accounting for 90% of its fuel consumption.

In addition to Rosneft, Eni holds an 8% stake, and Shell owned a 37.5% stake before agreeing to sell it to Prax Group in December 2023.