The United States is engaged in discussions with the German government and Russian officials regarding the potential resumption of refining Russian oil from a key pipeline running through Germany, according to reports from German and independent Russian media outlets.
Russia remains a major oil exporter, but in response to Moscow's full-scale invasion of Ukraine over three years ago, Western nations have sought to curb its oil revenues. Germany is connected to the extensive Druzhba pipeline, which spans thousands of kilometers via Poland and Belarus.
The PCK refinery, located near Schwedt in northeastern Germany, currently operates using Kazakh oil and plays a crucial role in supplying Germany's fuel needs, as reported by Reuters. Deliveries of Russian oil to Schwedt ceased in January 2023. However, former President Donald Trump's apparent efforts to restore ties with Moscow may lead to a change in policy.
According to a joint report by German investigative outlet Correctiv and independent Russian outlet iStories, Russian, German, and U.S. officials are in talks about restarting the refinement of Russian oil from the Druzhba pipeline in Germany.
As part of these negotiations, U.S. companies would acquire a majority stake in the Schwedt refinery, currently controlled by Rosneft’s German subsidiary, sources familiar with the discussions said.
The German government, under outgoing Chancellor Olaf Scholz, assumed control of the Schwedt refinery in the fall of 2022. The negotiations to resume Russian oil refinement are being managed by the Chancellor’s Office and the Finance Ministry in Berlin, bypassing involvement from the Foreign Ministry, according to the reports.
Dietmar Woidke, a member of the Social Democratic Party and Minister President of Brandenburg—where Schwedt is located—expressed support for reintroducing Russian oil to the refinery in recent remarks to German media.
Separately, the Financial Times reported in early March that U.S. investors were exploring the possibility of restarting gas flows through the Nord Stream 2 pipeline to Europe. The report indicated that some officials from the Trump administration were aware of these discussions.
Germany’s Economy Ministry, however, denied any negotiations with Russia regarding potential pipeline-based gas supplies via Nord Stream 2.
"Independence from Russian gas is of strategic importance to the German government in terms of security policy, and it remains committed to this stance," the ministry stated.
Earlier this month, the German newspaper Bild reported that U.S. and Russian representatives had engaged in "secret talks" about resuming Russian gas exports to Germany via Nord Stream 2.
In 2022, explosions severely damaged the Nord Stream 1 and Nord Stream 2 pipelines. Danish authorities later described the incidents as "sabotage." Germany continues to investigate the case, while Sweden closed its inquiry in February 2024 without identifying those responsible.
Kirill Dmitriev, a close ally of Russian President Vladimir Putin, told CNN earlier this month that improved cooperation between Moscow and Washington could "include energy," though he did not provide further details.
Meanwhile, Ukrainian forces recently targeted the Druzhba pipeline in Russia’s Oryol region, disrupting oil supplies to Hungary. Despite being a NATO member, Hungary has maintained ties with Russia throughout the conflict in Ukraine and relies heavily on Russian oil via the Druzhba pipeline.
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