Qatar expands its influence in Europe through the purchase of Rosneft assets
By Asif Aydinli
Qatar is currently in talks with the German government to potentially buy Rosneft's assets in Germany . According to Bloomberg, citing unnamed sources, a Qatari delegation recently made a trip to Berlin's Chancellery to negotiate the deal. If these negotiations are successful, Rosneft's German assets could soon have a new owner, adding an interesting twist to Germany’s energy landscape and Russia's position in Europe. However, Germany's Ministry of Economy has noted that no final decision has been made yet, suggesting that there are still some hurdles to clear before any agreement is reached.It's not surprising that Qatar is interested in picking up Rosneft's assets in Germany, given their existing strong ties with Russia. The Qatar Investment Authority (QIA), which is Qatar's sovereign wealth fund, already owns nearly 19% of Rosneft’s shares, a stake they acquired back in 2016. This move was a significant step in bolstering economic connections between Russia and Qatar. If this deal goes through, it could further deepen those ties and give Qatar even more influence in Europe's energy sector.
Relations between Qatar and Germany have also been warming up recently. In October 2023 , German Chancellor Olaf Scholz welcomed the Emir of Qatar, showing the close diplomatic rapport between the two countries. Additionally, Jörg Kukies, Scholz’s economic advisor, has held several meetings with Mansoor Al-Mahmoud, the CEO of QIA, over the past few months to discuss this potential deal and other economic topics related to energy. The latest of these meetings took place on August 14, 2024, underscoring the importance of these ongoing discussions.
The backdrop for these negotiations is quite complex. For the past two years, Rosneft's German assets have been under the control of the German Federal Network Agency (BNetzA). Back in September 2022, Rosneft’s German subsidiaries—Rosneft Deutschland and RN Refining & Marketing GmbH—were placed under the agency's trusteeship. This was a precautionary move by the German government due to concerns about the stability of Rosneft's operations in the country, especially as other companies were planning to cut ties with the Russian firm because of international sanctions. As a result, the agency took over Rosneft's stakes in three refineries: PCK Raffinerie in Schwedt (54.17%), MiRO in Karlsruhe (24%), and Bayernoil in Vohburg (28.57%).
Selling these assets could finally resolve a two-year battle over control of these German facilities. The trusteeship of these assets has been extended several times, with the next deadline approaching on September 10, 2024. In March 2024, reports surfaced that Rosneft had started the process of selling its German assets, aiming to close the deal by September, highlighting the urgency for the Russian company to finalize the sale.
It’s not just Qatar that's eyeing these assets; there have been other interested buyers from around the globe. Poland’s PKN Orlen and India’s Reliance Industries have both shown interest in acquiring Rosneft's stakes in Germany. However, according to Bloomberg, any potential buyer will likely need to be from outside the European Union to avoid financial complications related to sanctions, making Qatar a prime candidate for the acquisition.
All in all, these ongoing negotiations between Qatar and Germany could be a game-changer for Europe’s energy strategy and the international positioning of Russian assets. If the deal is sealed, it could mark a significant shift in Germany's energy sector and further solidify Qatar's role as a major player on the global energy stage.
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