German authorities have approved a 400 million euros subsidy for an oil refinery in Schwedt. These funds are supposed to be spent on increasing the capacity of the pipeline leading to the enterprise, Report informs referring to local media.
The German authorities should discuss this issue with Brussels, as the approval of the European Commission is necessary for the allocation of subsidies.
The company clarified that subsidies are needed to increase the throughput capacity of the oil pipeline from the Baltic port city of Rostock to Schwedt from 6 million to 9 million tons. Refinery managing director Ralph Scheirer said the application for pipeline upgrades and government subsidies was submitted on July 7.
The share of Rosneft in this project is 54.17%. In September 2022, the German government ordered to transfer the assets of the Russian company to the state-owned Federal Grid Agency for six months. It is trying to challenge this in court.