Scholz commits one billion euros to East Germany

Economics Minister Robert Habeck, Federal Chancellor Olaf Scholz and Dietmar Woidke, Prime Minister of Brandenburg

Scholz, Habeck and Woidke presented the support package for East Germany today.

(Photo: dpa)

Berlin Federal Chancellor Olaf Scholz described the concept for securing the PCK refinery in Brandenburg as a “far-reaching energy policy decision to protect our state”. Russia is no longer a reliable partner, said the SPD politician on Friday. The federal government is doing everything to secure the supply of energy and especially oil.

At the Schwedt site, one billion euros will be invested over several years as part of a future package. Schwedt should receive funds of 825 million euros from the federal and state governments. “The hanging game is over.” It’s now about getting the location. “This is intended to avoid redundancies.” Further funds are planned for the Leuna site in Saxony-Anhalt and the ports in Mecklenburg-Western Pomerania.

The federal government announced in the morning that the majority owners of the PCK refinery – two subsidiaries of the Russian state-owned company Rosneft – would be placed under trusteeship by the Federal Network Agency and thus under state control.

The background is the oil embargo against Russia because of the Ukraine war, which takes effect on January 1st. At the EU level, Germany has committed itself to refraining from Russian pipeline oil. Until now, PCK has been supplied with Russian oil via the Druzhba pipeline. According to the Economics Ministry, Rosneft had little interest in turning away from Russian oil.

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After Rosneft was ousted from power in the Schwedt oil refinery, Federal Economics Minister Robert Habeck (Greens) says that the energy supply of East Germany is secure. Scholz adds that he did not discuss this topic in his recent conversation with Russian President Vladimir Putin.

More: Medium-sized companies fear total failures in electricity and gas

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