(MENAFN) The United Kingdom has granted a sanctions exemption to two subsidiaries of Russia’s state-controlled energy giant, Rosneft, which are based in Germany.

These subsidiaries have been nationalized by the German government, allowing businesses and financial institutions to continue operations with them, according to the UK Office of Financial Sanctions Implementation (OFSI).

Just last week, the UK government intensified its energy-related sanctions against Russia’s largest oil producers, Rosneft and Lukoil, by targeting their international partners.

The newly imposed measures involve asset freezes and restrictions on services and transportation linked to these companies. Prior to this update, both Rosneft and Lukoil had already been subjected to sectoral sanctions.

On Wednesday, the UK announced that it would allow business dealings with Rosneft Deutschland and RN Refining & Marketing.

The government emphasized that these subsidiaries had been placed under German state control until March 2026.

The German government took control of these companies shortly after the escalation of the conflict in Ukraine in February 2022.

This arrangement, referred to as a trusteeship, is renewed every six months and allows the Federal Network Agency to manage Rosneft's assets within Germany.

This includes overseeing Rosneft’s stakes in major refineries, such as PCK Schwedt, MiRo, and Bayernoil.

Rosneft has criticized the move to place its German subsidiaries under external management, labeling the action as unlawful and a violation of fundamental principles of a market economy.

Russia has consistently rejected Western sanctions as illegal, with Kremlin spokesperson Dmitry Peskov referring to the restrictions as a “double-edged sword,” warning that each new round of sanctions brings negative repercussions for the countries imposing them.

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