PCK Schwedt, a German oil refinery, has requested $441 million (€400 million) in government aid from the country's economy ministry to enhance the Rostock-Schwedt pipeline.
According to the report, Ralf Schairer, the Chief Executive Officer of PCK, disclosed the financial aid request during a task force meeting established to ensure the refinery's future following the conflict between Russia and Ukraine.
German authorities assumed operational control of the refinery after Russia invaded Ukraine. PCK Schwedt is primarily owned by Rosneft, a Russian energy company, holding a majority stake of 54%. The refinery has been a major supplier, historically providing 90% of the fuel consumed in Berlin.
In April, Germany enacted a law to divest Rosneft's stake in the refinery, although the timing and method of this divestment remain unclear.
Last October, Rosneft filed a lawsuit against Berlin for seizing control of its German subsidiary, and in April, its legal counsel asserted that the actions of the German government constituted "expropriation."
With the oil giants Eni and Shell among the shareholders of Schwedt, recent reports indicate that PKN Orlen, a Polish oil company, is interested in acquiring a stake in the PCK Schwedt refinery.
According to Bloomberg News, PKN Orlen CEO Daniel Obajtek stated that the company would only proceed with the purchase if German authorities ceased considering Rosneft as a shareholder of the refinery.
"We are not inclined to engage with investors from the East. The German side must resolve this matter first," Obajtek said in an interview earlier this month.