The 274-meter-long tanker Eventin is now being held in place with the help of two tugboats near the harbor in Sassnitz on Rügen.
The tanker was towed there on Sunday morning. It will be held there until a decision is made on how to proceed, according to Benedikt Spangardt, spokesperson for the German authority responsible for major maritime emergencies.
The Eventin's cargo contains almost 100,000 tons of oil.
The Panama-flagged vessel had loaded the oil in the Russian Baltic Sea port of Ust-Luga before setting out to sea on January 6 with Egypt as its destination, but encountered maneuvering problems along the way.
According to German media, the tanker is on the list of ships in the Russian shadow fleet compiled by the environmental organization Green Party, which is intended to circumvent international sanctions.
On Friday, Germany's Foreign Minister Annalena Baerbock criticized the Kremlin for risking both the environment and regional security by using a fleet of "dilapidated oil tankers".
According to the German public service broadcaster NDR, the crew consists of 24 people.