UK Grants Sanctions Waiver to Rosneft’s German Subsidiaries

The United Kingdom on Wednesday issued a special licence allowing businesses to continue dealings with two German subsidiaries of the sanctioned Russian oil giant Rosneft, citing the fact that both firms are currently under the control of the German government.

Last week, the UK imposed new sanctions on Rosneft and Lukoil, Russia’s two largest oil companies, accusing them of helping finance the Kremlin’s war in Ukraine.

In its latest update, the British government said that companies and banks would be permitted to maintain operations with Rosneft Deutschland GmbH and RN Refining & Marketing GmbH, which remain under German trusteeship until March next year.

Following Russia’s invasion of Ukraine, Berlin placed the subsidiaries under state trusteeship — a legal mechanism allowing temporary government control to ensure the stability of energy supplies. The measure must be renewed every six months.

Germany first enacted the trusteeship in September 2022, shortly after the full-scale Russian invasion, to secure operations at key refineries.

The arrangement allows the German government to manage Rosneft’s stakes in critical refineries, including PCK Schwedt, MiRo, and Bayernoil, ensuring uninterrupted fuel production and supply while limiting Moscow’s influence over the country’s energy infrastructure.