Germany’s Schwedt refinery faces uncertain future after Russian oil cut
The former Rosneft‑controlled plant near Berlin is operating at 80% capacity but faces supply, funding and political hurdles that could shape Germany’s energy landscape.
Three years after Germany stopped importing Russian crude, the PCK Schwedt refinery in Brandenburg is still running, but at a reduced output and under a cloud of geopolitical tension.
New supply routes and capacity limits
When Moscow halted the flow of Kazakh oil in May 2022, the plant turned to the Baltic ports of Rostock and Gdańsk for deliveries. The shift has kept the complex, built in the 1960s, operating at roughly 80% of its design capacity. Yet the refinery’s ageing link to Rostock needs modernisation, a costly upgrade that remains unfunded.
Ralf Schairer, who became managing director a month before the Ukraine invasion, says the daily reality now involves “constant surprises” and “problem‑solving”. The workforce of 1,200 feels the strain, with many learning about changes from the media rather than internal briefings.
Political deadlock and investment risk
German authorities placed the refinery’s Russian‑owned unit under state trusteeship after EU sanctions hit Rosneft. However, Brussels has refused to release the €400 million aid package requested in 2023 because Rosneft still holds a 54% stake. The lack of funds hampers the infrastructure upgrades needed for a future shift to synthetic fuels based on hydrogen.
Shareholders are split: Shell wants to sell its 37.5% holding, while Italy’s Eni retains an 8% stake. Their divergent positions, combined with the EU’s upcoming emissions‑trading rules that will shift reporting responsibilities to fuel suppliers, create “colossal investment” uncertainties, according to Schairer.
Danny Ruthenberg, chair of the works council, describes the situation as “real uncertainty”. US sanctions on Rosneft have also prompted software partners such as Microsoft and Honeywell to withdraw, further isolating the plant.
Local politics and the road ahead
In the town of Schwedt, where the refinery is the largest employer, fear of job losses fuels political shifts. The far‑right Alternative for Germany (AfD) has gained ground, echoing trends discussed in Why the AfD is popular in the east. Mayor Annekathrin Hoppe says trust in the government has eroded dramatically since the war began, and she sees little hope of the refinery returning to Russian crude even if the conflict ends.
Looking forward, the refinery’s survival hinges on three factors: securing a stable, non‑Russian feedstock, unlocking EU‑approved financing, and navigating a fragmented shareholder landscape. If none materialise, the plant could face further capacity cuts or even closure, a scenario that would ripple through Germany’s fuel supply chain and regional employment.
For now, Schwedt’s workers and local officials brace for a protracted period of adjustment, as the energy sector recalibrates to a post‑Russian oil Europe.
