No Russian oil has been delivered via the Druzhba pipeline to the PCK refinery in Germany in more than two years because of sanctions levied against Moscow following its full-scale invasion of Ukraine.
However, with the plant in the town of Schwedt on the border with Poland struggling to adapt to processing other raw materials, calls are growing louder for a return to the good old days.
“Many people, especially in Schwedt, see it as conceivable and desirable that oil could once again flow via the pipeline,” said Hans-Joachim Hoeppner, leader of the city council.
Photo: AFP
Having to accommodate different types of oil at the plant, which employs some 1,200 people, has made production less “effective,” said Hoeppner from the center-right Christian Democratic Union.
The idea of reopening the door to the European market for Russia has up until now been firmly dismissed by officials in Berlin, but the thaw in US relations with the Kremlin instigated by US President Donald Trump since his return to office has raised hopes of a possible agreement on a ceasefire in the Ukraine war.
“If changes are happening in the relationship with Russia... then I think it is very possible that there is Russian oil,” Hoeppner said.
German sanctions on Russian oil brought a halt to deliveries of crude via the Druzhba pipeline — Russian for “friendship” — at the start of 2023.
Since then, the refinery in Schwedt has been drawing substitute supplies via a pipeline to Rostock, as well as small volumes through the Polish port of Gdansk and from Kazakhstan.
The changes have left the plant operating at about 80 percent capacity and firmly “in the red,” said Danny Ruthenburg, head of the works council.
A “solution” is urgently needed to keep the refinery running and save jobs locally, said Ruthenburg — whether that means more oil from Rostock or via the Druzhba pipeline after an end to the war in Ukraine.
Brandenburg Premier Dietmar Woidke of the Social Democratic Party last month signaled that he might be open to the return of Russian oil.
“I would be pleased if we could return to normal economic relations with Russia,” Woidke said, adding that the refinery is a “hugely important” player in the region’s economy.
Others have been more explicit in their demands. “Lift the sanctions, because they only hurt us more than the Russians,” said Peggy Lindemann, a member of the works council and city councilor for the far-right Alternative for Germany.
When Russian oil was withdrawn from Schwedt, the government promised to prepare a switch to the production of hydrogen — but the plans have stalled, leaving the plant in limbo.
The situation is also complicated by the fact that the PCK refinery is majority-owned by Rosneft Deutschland, a local subsidiary of the Russian oil giant, and managed through a trusteeship by the German government.
Berlin’s control over the Russian asset, justified as a measure to protect critical infrastructure, was prolonged last month with a renewed promise that Rosneft would sell its interest.
However, finding a buyer would likely be challenging as long as the business still has to contend with oil sanctions.
Talks have recently been reported on the possible revival of another seemingly stranded Russian fossil fuel project, the Nord Stream gas pipeline network.
Russian Minister of Foreign Affairs Sergei Lavrov last month said that discussions had taken place between US and Russian officials on reviving the pipelines — even if it seems highly unlikely that Berlin would give the green light to such a project.
The Schwedt plant has also been mentioned in US-Russia talks, a report by the German investigative Web site Correctiv said.
“In principle, it would be a solution... it would create security,” Hoeppner said. “I don’t have anything against it.”
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