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25-10-2025
BERLIN/ MOSCOW: Germany is seeking an exemption from US sanctions on Russian oil company Rosneft’s German business, a person with direct knowledge of the government discussions said on Thursday, after banks said sanctions could stop them dealing with the local energy supplier.
Rosneft’s German business is controlled by German authorities but Russian-owned. It is a key supplier, routing and refining oil to petrol pumps and some airports in Europe’s biggest economy.
Rosneft’s German arm, which includes stakes in the Schwedt, MiRo and Bayernoil refineries, was put under government trusteeship in 2022 after Russia’s full-scale invasion of Ukraine, which rocked decades-long energy ties with Moscow.
A spokesperson for Germany’s economy ministry said US sanctions should not apply to Rosneft’s German business because it was decoupled from its Russian parent and was under German control.
Rosneft and the US Treasury did not immediately respond to a request for comment.
US President Donald Trump imposed sanctions on Russia earlier this week, targeting Rosneft and Lukoil, amid growing frustration with Russian President Vladimir Putin who has not agreed to a ceasefire in Ukraine.
The sanctions against Russia’s two largest oil firms are a major policy shift for Trump, who has resisted international calls for fresh sanctions over Russia’s war in Ukraine.
The sanctions by the United States follow a similar move last week by Britain to sanction Rosneft and Lukoil.
A few days later, London issued a special licence allowing businesses to work with two German subsidiaries of Rosneft, on the grounds that they were under German state control. This followed lobbying by the German government, the source said.
The United States is the world’s most powerful sanctions authority in part because it can target banks working with blacklisted companies, severing a bank’s access to the dollar, a cornerstone of international finance.
Losing access to the US currency would plunge any bank into a crisis.
So far, Berlin has shied away from nationalizing Rosneft’s activities, opting instead to maintain de facto control via a trusteeship that still leaves legal ownership in Russian hands.
The United States hit Russia’s major oil companies with sanctions on Wednesday and accused the Russians of a lack of commitment toward ending the war in Ukraine, as Moscow conducted a major training exercise involving nuclear arms.
The new sanctions were unveiled one day after plans for a summit between US President Donald Trump and Russian President Vladimir Putin fell apart. Trump told reporters he cancelled the meeting because “it didn’t feel right to me.”
The US Treasury Department said Russia’s two largest oil companies, Rosneft and Lukoil, were targeted in a bid to damage Moscow’s ability to fund its war machine.
The move marked a sharp turnaround for the White House, which has veered between pressuring Moscow and taking a more conciliatory approach aimed at securing peace in Ukraine. Only last week Trump appeared ready to hold off on new actions targeting Moscow.
“Now is the time to stop the killing and for an immediate ceasefire,” US Treasury Secretary Scott Bessent said. Oil prices extended gains after Bessent’s comments, rising by more than $2 a barrel.
For months, Trump has resisted pressure from US lawmakers to impose energy sanctions, hoping that Putin would agree to end the fighting but with no end in sight, he said he felt it was time. (Int’l News Desk)
