Shell (SHEL.US) had previously agreed to sell its stake in the Schwedt refinery in Germany to Prax, which provides fuel to much of eastern Germany, but reports indicate that the deal has failed.

Shell stated in an email that both parties have decided to not proceed with the Trade, and the refinery is expected to continue normal operations.

Reports quote an informed source saying that Shell still intends to sell its 37.5% stake in the refinery in northern Berlin, with no current schedule for the sale.

Sanctions imposed after Moscow's invasion of Ukraine have threatened the main supply sources for the refinery.