Expropriation of PCK Refinery in Sweden: The Left is on a course of confrontation with Russia

A German politician with the left-wing party Die Linke has called for the nationalization of the PCK refinery in Schwedt, Brandenburg, arguing that this would secure its future. The move comes amid ongoing energy supply challenges following Russia’s invasion of Ukraine and growing tensions over oil imports from Russian state-owned companies. The PCK refinery in Schwedt has been under constant uncertainty since 2022. In September of that year, seven months after Russia's full-scale invasion of Ukraine, the German government placed the Russian-owned Rosneft subsidiary under the administration of the Federal Network Agency. At the time, the coalition government had approved 400 million euros to upgrade the oil pipeline from the port of Rostock to the refinery in Schwedt, aiming to increase its capacity from 5.5 to 9 million tons of crude oil per year. However, the European Commission has yet to approve this aid, and it is unlikely to do so in the future. According to the federal government, both the German government and the European Commission agree that Rosneft should not receive financial support. The application for funding is still pending in Brussels. Christian Görke, a member of parliament from Brandenburg and a representative of Die Linke, argues that the delayed pipeline upgrades have left the 3,000 workers directly and indirectly employed at PCK in a precarious situation. He criticizes the energy policy of Minister Katerina Reiche, calling it a case of political ineptitude. Since May 1, Kasakstan, which had become an alternative supplier of crude oil after the shutdown of Russian deliveries, has suspended shipments to Schwedt. This follows Russia’s claim that repairs are needed on the Druzhba pipeline. As a result, two million tons of Kazakh crude oil intended for Schwedt have been lost. PCK must find alternative sources of supply to ensure the continued operation of the refinery, which serves the energy needs of northern Germany, Berlin, and western Poland. However, securing these supplies has proven difficult. The pipeline from Rostock is fully utilized, and alternative routes would require using pipelines from the Polish port of Gdańsk. Görke claims that Poland has made it clear it will not allow Rosneft to benefit from Polish infrastructure, even though the company operates under the administration of the Federal Network Agency. Therefore, he argues, the 54 percent stake held by Rosneft in PCK should be nationalized by either the federal or regional government to ensure energy security. The Ministry of Economics, Energy, Climate Protection, and Europe in Brandenburg, which is led by the CDU, expressed appreciation for the restored energy security at PCK and thanked the federal government for successful negotiations. A spokesperson stated that the current utilization rate of the refinery remains stable, ranging from 85 to 90 percent, and there are no signs of disruption to the supply chain. Görke disputes this assessment, accusing the government of unequal treatment. He points out that Rosneft has previously demanded six billion dollars for its share of the company. He calls this demand absurd, noting that a refinery in the west was recently sold at a profit. He further laments that such refineries in the west are often nationalized, citing the example of Meyer Werft.