Shell sells stake in Schwedt oil refinery — a test of Germany’s energy security
The sale of an asset, the majority of which is owned by a Rosneft subsidiary, turns a business operation into a geopolitical issue. We explain why this matters now.
By Tetiana Suchkova-Ladik
December 16, 2025 · 2 min read
What happened
Company Shell has resumed attempts to sell its stake in the German refinery PCK Schwedt, Reuters reports, citing three sources. The asset draws attention not only as a business object but also as an element of energy infrastructure, part of which (54.17%) belongs to the German subsidiary of Russian Rosneft — Rosneft Deutschland.
The German government temporarily took control of Rosneft Deutschland's assets in September 2022 to guarantee energy security, and has been renewing that regime every six months.
Candidates and background
An earlier attempt by Shell to sell its stake to the British Prax Group failed. According to Reuters, among those interested this time is private trader Liwathon Group, Tibor Fedke, a partner at German law firm Noerr who advises Liwathon in Germany, said.
"Liwathon Group is one of the interested buyers,"
— Tibor Fedke, partner at Noerr
Key facts
Schwedt supplies most of the fuel for Berlin (including the airport), gasoline for filling stations in eastern Germany, and critical feedstocks for the local chemical industry.
In February 2024 Reuters, dpa and Handelsblatt reported that the German government had considered the possibility of nationalising Rosneft Deutschland, but this did not occur. On October 29 the U.S. Treasury Department issued a licence exempting Rosneft's German subsidiary from U.S. sanctions until April 2026. On October 30 Reuters recorded renewed discussions in Germany about potential nationalisation.
Why it matters (for Europe and for Ukraine)
This transaction is not simply a change of owner. When a key refinery is controlled by or linked to Russian assets, it creates a geopolitical vulnerability. For neighbouring countries, including Ukraine, the stability of European energy supplies is a matter of security and economic importance.
The sale of the asset could reduce the Kremlin's influence in the EU's energy infrastructure, but the effect will depend on who the buyer is and under what conditions. If the new owner is a transparent European investor subject to proper regulatory scrutiny, the risks will be reduced. If the buyer has opaque links or serves the interests of third parties, the vulnerability will remain.
What’s next
A few key markers to watch: decisions by regulators in Berlin on whether to permit a sale or to nationalise; the ultimate owners of potential buyers; the reaction of sanctions partners; and the duration of the U.S. licence until April 2026. The answers to these questions will determine whether Schwedt becomes simply a business transaction or a precedent in reducing Russia's strategic influence over Europe's energy sector.
Conclusion. The ball is now in the German authorities' and regulators' court: declarations must be turned into transparent decisions that take into account both economic interests and regional security concerns.
