The German court supported the decision to take control of Rosneft units

The Federal Administrative Court found that the decision from mid-September to place "Rosneft Deutschland GmbH" and "Rosneft Refining and Marketing GmbH" under the administration of the competent German Federal Agency was legal.

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Illustration, Photo: Shutterstock
Illustration, Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Today, the German Federal Court confirmed the government's decision from last year to place two subsidiaries of Rosneft under the control of the German authorities, rejecting the complaints of the Russian oil giant.

The Federal Administrative Court found that the decision from mid-September to place "Rosneft Deutschland GmbH" and "Rosneft Refining and Marketing GmbH" under the administration of the competent German Federal Agency was legal.

That "trusteeship," initially imposed until March 15, gave German authorities control over three Russian-owned refineries in Germany.

At that time, Rosneft accounted for about 12 percent of Germany's oil refining capacity, importing oil worth several hundred million euros every month, according to the German government.

Chancellor Olaf Scholz said in September that the government "ensures that Germany is supplied with oil in the medium and long term". He said this particularly applies to the refinery in Swed, on the border with Poland, northeast of Berlin, which provides petroleum products for the capital and much of northeastern Germany.

In the complaints about that move, the government was criticized for doing it without first hearing Rosneft, with the explanation that there was no sufficient reason for it and that it was disproportionate.

The court found that, under the circumstances, the Government was not obliged to hear Rosneft before acting. The decision states that indications of a possible withdrawal of capital are based on fears that these subsidiaries could fail, which the government has already tried to avoid with the former German unit of the gas company Gazprom by taking control of it.

Germany later nationalized the former Gazprom unit, which was renamed "Securing Energy for Europe".

Germany's Economy Ministry welcomed Thursday's Rosneft court ruling and said it plans to extend the "guardianship" of Rosneft subsidiaries for another six months.

Economy Minister Robert Habek said in a statement that the verdict is "good news for security of supply" and for the refinery in Šved.

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