The rescue of the PCK refinery in Schwedt, Brandenburg, which has been hotly debated in recent days, is becoming a federal political issue. Since the German government and the European Union want to do without Russian oil in the future, the refinery is facing extinction. Up to 2,000 employees would be affected. The rescue is not only about how to deal with fossil fuels from Russia, but also about how to deal with heavy industry in the east of the republic.
Critics complain about a supposed discrimination of the East
The concrete problem is that the refinery in Schwedt is particularly dependent on Russian crude oil. However, the government no longer wants to import this from there after the Russian war of aggression. The coming oil embargo would not only make operation difficult, but, according to many experts, impossible. While it would still be theoretically possible to simply cut production for a time, it would be an economic disaster for the refinery. Losses of up to 400 million euros per year are in the cards.
Image: Ralf Roletschek, GFDL 1.2, via Wikimedia Commons
Refinery in Schwedt is an important employer in the structurally weak region
But it is not only the supply that is stirring up tempers. The refinery in Schwedt is a major employer in a region of Germany that is already struggling with structural disadvantages in many other areas. So it cannot be completely dismissed that the criticism, which is directed primarily at the Ministry of Economics of the Green Minister Habeck, also has to do with the East-West question. It is true that Habeck made a personal visit to the site at the beginning of May and promised the employees that all necessary steps would be taken to preserve the jobs. In Schwedt, however, people are not quite sure how high a priority this really is for the minister.
The Brandenburg state government also made a clear appeal to the Ministry of Economics. The problem here is also that the refinery is directly dependent on a Russian pipeline. A supply from other sources is therefore not so easily possible. If no more oil comes from the pipeline, operation in Schwedt is no longer possible. That would be another blow for the Uckermark. There, people have suffered particularly from the switch to renewable energies in recent years.
Federal government guarantees operation in the next few years
Movement now came into the case on 17 June. The parliamentary state secretary of the Ministry of Economic Affairs, Michael Keller, spoke in person and, in addition to expressions of solidarity for the workers in Schwedt, also arranged a guarantee for their jobs. Even after the phase-out of Russian oil, the refinery in Schwedt is to continue processing crude oil in 2023 and in the years to come. For this purpose, there is to be an expansion of the necessary infrastructure in the east.
Habeck wants pipeline built from Rostock to Schwedt
According to the plans of the Ministry of Economics, the government wants to extend the pipeline from Rostock to Schwedt. There are also further talks according to which a delivery via the Polish pipelines should be possible. However, this work could not be completed within a year, so there will be a transitional period. Nevertheless, the works council is cautiously optimistic that the jobs in Schwedt can be maintained.
In addition, there are several other problems that have to be solved by then. The refinery is still owned by the Russian state-owned company Rosneft. Possible fiduciary takeovers or even nationalisation are at least on the cards. Schwedt is thus another example of how the new push in energy policy due to the Russian war in Ukraine will still bring many challenges in the immediate future. The uncertainty among affected workers and consumers is correspondingly high.
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