Three Russian oil refineries have come under German oil control, in order to regulate supply of diesel and gasoline products. This is likely an attempt to help soften the energy blow in Europe due to the Russian Invasion in Ukraine earlier this year. Not only has physical supply been tight in Europe since the Russian invasion, but costs have been outlandish as well. The seized Russian refineries will be regulated for the time being by Germany’s Federal Network Agency. These Refineries include PCK Schwendt, MiRo, and Bayernoil which all account for a large chunk of supply for Europe.
Germany’s control of these entities is coming shortly after banning almost all of the Russian imported oil barrels – about 90% in total by the end of 2022. This move should prove to be immediately impactful as the PCK Schwendt refinery is responsible for approximately 220,000 barrels of crude daily, which loosely equates to over 9 million gallons of refined product such as diesel fuel. It is early in the development to grasp how the takeover will impact regular operations, but Shell – who own stake in Schwendt, has been uneffected to this point.