German Chancellor Friedrich Merz has expressed confidence that the United States will grant an exemption for the German subsidiary of Russia’s state-owned oil giant Rosneft from the latest round of US sanctions.
Speaking to reporters at an EU summit in Brussels on Thursday, Merz said the matter had already been discussed “briefly” with Washington and that he assumes a “corresponding exemption” will be approved. “We will discuss this with the Americans,” he added.
Rosneft continues to hold stakes in three refineries in Germany, which were placed under state administration in 2022 following the escalation of the Ukraine conflict. The facilities account for roughly 12% of Germany’s total oil-processing capacity, according to Bloomberg.
Earlier this week, US President Donald Trump unveiled a new package of sanctions targeting Russia’s energy sector, including Rosneft and Lukoil. The measures prohibit American firms and financial institutions from conducting business with the companies.
Berlin has argued that Rosneft’s German subsidiaries have been “decoupled” from their Russian parent company and should not be subject to the sanctions. On Wednesday, the United Kingdom issued a similar exemption allowing continued business activity with Rosneft’s German-based assets, despite expanding its own energy sanctions against Russia.
The situation underscores the growing tension between economic pragmatism and geopolitical alignment for Germany. The country’s economy has faced two consecutive years of contraction, weighed down by high energy costs and the loss of Russian supplies. Policymakers in Berlin are under pressure to ensure energy security while maintaining solidarity with Western allies.
Rosneft has criticized the seizure of its German subsidiaries as “unlawful” and a breach of market economy principles. Moscow, meanwhile, has dismissed Western sanctions as illegal and “counterproductive,” vowing that Russia’s energy sector will remain resilient despite international pressure.
