- Schwedt refinery struggles after losing access to Russian oil, now operating at 80% capacity with rising costs.
- Political tensions grow as far-right AfD and some mainstream leaders call for lifting sanctions on Russia.
- There is no buyer yet for Rosneft’s stake in the refinery, raising uncertainty about the plant’s future and Germany’s energy stance.
The eastern German town of Schwedt faces rising economic and political tensions as its refinery fights to stay afloat without Russian oil. The PCK refinery stopped receiving crude from Russia in January 2023 after the European Union enforced an embargo following Russia’s invasion of Ukraine.
Once a central industrial hub in East Germany, the plant now runs at only 80% capacity. It previously relied on oil delivered through the Soviet-era Druzhba pipeline. Now, it imports crude oil from the German port of Rostock and the Polish port of Gdansk.
These new routes have increased costs. Works Council chairman Danny Ruthenburg said the refinery now processes 25 types of crude. This variety reduces efficiency and eats into profits. “We are in the red,” Ruthenburg said.
The crisis has fueled political unrest. The far-right Alternative für Deutschland (AfD) party has gained regional support. Peggy Lindemann, an AfD councillor in Schwedt, said the embargo damages Germany more than Russia. “The sanctions are destroying our economy,” she said.
Even mainstream leaders share that concern. Dietmar Woidke, Social Democrat premier of Brandenburg, called for a return to economic relations with Moscow. He argued that normal trade would protect jobs and stabilise the local economy.
Rosneft Deutschland owns the majority of the refinery. The German government placed it under trusteeship in September 2022 to limit Russian influence. In March, Rosneft agreed to sell its stake. However, no buyer has emerged, according to investigative outlet Correctiv. The U.S. and Russia reportedly discussed the situation during recent diplomatic talks.
The Schwedt case highlights broader challenges in Germany’s energy policy. Russian Foreign Minister Sergey Lavrov recently said officials had resumed talks on reviving the Nord Stream gas pipelines. Before the war, the pipelines carried Russian gas to Germany through the Baltic Sea.
German officials insist they will not restore energy ties with Russia. However, rising energy prices, inflation, and job losses have increased public pressure. Business leaders warn that more factories could shut down if energy costs remain high.
In Schwedt, frustration runs deep. “We’re paying the price for decisions made far away,” said one refinery worker who requested anonymity.
The federal government continues to stress the importance of energy independence. Officials believe breaking free from Russian energy will secure Germany’s long-term future. However, many residents in Schwedt feel those policies ignore their reality.
The fate of Schwedt’s refinery may soon test Germany’s commitment to its post-war energy strategy. As costs rise and political divisions deepen, Germany must choose between its economic stability and geopolitical principles.