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Food: Russian oil company Ronesft calls German government nationalization of company «illegal»

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Russian oil company Rosneft on Saturday described as "illegal" the German government's decision to take control of the company's three refineries in the German country on the grounds that the production of the oil distilleries was endangered by Russian ownership of the company.

Two cars are checked at the entrance to Rosneft's PCK refinery in Schwedt. - Annette Riedl/dpa © Provided by News 360 Two cars are checked at the entrance to Rosneft's PCK refinery in Schwedt. - Annette Riedl/dpa

"This decision is illegal and, in essence, is an expropriation of property assets following the situation intentionally created by the relevant European Union sanctions and the actions of German and Polish regulators with the aim of seizing the assets," the Russian company said in a statement.

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The determination, announced early Friday by the German Ministry of Economics and Climate Protection, however, has not caught the Russian oil company by surprise, which has argued that it "follows the logic of the algorithm of actions concerning Russian companies in Germany imposed by the United States."

Rosneft also considers this to be "a violation of all the fundamental principles of the market economy", as well as of "the foundations of the civilization of modern society".

The company's German subsidiary -- which accounts for about 12 percent of Germany's oil processing capacity -- would have followed all German regulatory requirements "despite the complex situation on the energy market."

"Rosneft Germany continued to fully meet its obligations for the supply of oil products and held discussions on new contracts necessary to ensure security of supply, especially in the Berlin-Brandenburg region and in western Poland," the oil company has maintained.

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However, Rosneft expressed hope that the decision taken by the German government is not temporary and is equivalent, "in essence, to an irretrievable loss of assets".

It has also announced that it will study all possible measures to protect its shareholders, including legal actions, while it has detailed that it can no longer take charge of the management of "health, safety and the environment at the refinery".

The German government announced Friday that it has "taken control" of the German unit of Russian oil company Rosneft, as well as its three refineries in the country, claiming that the production of the oil distilleries was endangered by Russian ownership of the company.

The control of Rosneft and its three refineries in the cities of Vohburg and Karlsruhe counteracts the "imminent threat" to the security of energy supply and establishes "an essential basis" for the preservation and future of the location of one of these oil distilleries.

To date, these refineries have relied on the supply of Russian crude oil through the Druzhba pipeline, which transports oil from central Russia to Europe.

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