Russian state-run oil company Rosneft has reported a nearly 50% jump in net profits for 2023, Reuters reports, hitting over $14 billion despite Western sanctions following Russia’s 2022 invasion of Ukraine.

According to Reuters, Rosneft’s 2023 net profit surged by 47.2% to 1.3 trillion rubles–the equivalent of approximately $14.7 billion. Earnings before EBITDA jumped 17.8% to 3 trillion rubles, with revenues up 1.3%.

Rosneft continues to rake in profits as Europe, particularly Germany, mulls the fate of Russian assets abroad.

Last week, attention was centered on Germany’s uncomfortable decision on the fate of a Rosneft refinery in this country. Berlin is considering nationalizing the refinery, which could risk supply cuts and end up costing Germany a major payout to Moscow.

The PCK refinery in the German town of Schwedt accounts for half of east Germany’s fuel supply and around 11% of the country’s total supply.

Berlin views nationalization as a way of securing longer-term energy needs.

However, while the refinery is currently under a government trusteeship, a decision must now be made as to whether to extend that, which means that Rosneft would continue to control it with its 54% stake. Germany has already extended the trusteeship twice, Politico reports.

At the same time, expropriating the Russian refinery assets would leave Germany owing Russia a billion euros.

Rosneft has around $7 billion in assets in Germany, according to Politico.

Germany has already nationalized a German subsidiary of Gazprom, and in the tit-for-tat process, Moscow has seized assets of Germany’s Wintershall oil and gas producer in Russia.

While Rosneft has posted a significant surge in profits, its refinery rates have dropped in February by 380,000 barrels per day, compared to December, with some refineries under maintenance and others being targeted by Ukrainian drone attacks. According to Bloomberg, Russian refinery rates dropped to 5.16 million bpd in the second week of February.

Related