British oil major Shell has ended negotiations with Polish energy company Unimot over the proposed sale of its 37.5 per cent stake in Germany’s PCK Schwedt refinery.

The discussions, which began in 2023, ended several months ago, Bloomberg News reported on Thursday, citing people familiar with the matter.

Unimot had emerged as a potential buyer of Shell’s interest and was reportedly in advanced talks with the company as recently as February.

Shell declined to comment on the development, while Unimot did not immediately respond to requests for comment.

The Schwedt refinery has been a major concern for the German government because of its links to Russia. Russian oil company Rosneft owns a 54.17 per cent stake in the refinery.

Germany placed Rosneft’s stake under government trusteeship following Russia’s invasion of Ukraine and Berlin’s decision to reduce its energy ties with Moscow. The arrangement gives the German government control of the asset while Rosneft retains legal ownership.

Shell had been seeking to sell its stake as part of efforts to exit the refinery, while the potential deal with Unimot offered a possible change in the ownership structure of the facility.

The PCK refinery processes crude oil into products including petrol, diesel, jet fuel and fuel oil, making it an important source of fuel supplies for the region.

With the negotiations now over, Shell’s 37.5 per cent stake in the refinery remains without a confirmed buyer.