Germany is seeking an exemption from U.S. sanctions on Russian oil company Rosneft's German business, a person with direct knowledge of the government discussions said on Thursday, after banks said sanctions could stop them dealing with the local energy supplier.

Axar.az informs, citing Reuters, Rosneft's German business is controlled by German authorities but Russian-owned. It is a key supplier, routing and refining oil to petrol pumps and some airports in Europe's biggest economy.

Rosneft's German arm, which includes stakes in the Schwedt, MiRo and Bayernoil refineries, was put under government trusteeship in 2022 after Russia's full-scale invasion of Ukraine, which rocked decades-long energy ties with Moscow.

A spokesperson for Germany's economy ministry said U.S. sanctions should not apply to Rosneft's German business because it was decoupled from its Russian parent and was under German control.

U.S. President Donald Trump imposed sanctions on Russia earlier this week, targeting Rosneft and Lukoil, amid growing frustration with Russian President Vladimir Putin who has not agreed to a ceasefire in Ukraine.