Takeover of Rosneft subsidiaries in Germany upheld by court

Berlin, March 14 (ČTK) – The Federal Administrative Court in Leipzig today upheld the legality of the German government’s decision to take control of two subsidiaries of Russian oil group Rosneft. Chancellor Olaf Scholz’s government took them into state trusteeship last September to ensure the country’s energy security, but the Russian group objected and challenged Germany’s move in court.

The German federal government took control of the German arm of Russian oil importer Rosneft and its subsidiary RN Refining & Marketing. Scholz’s cabinet placed them under the administration of the Federal Network Agency, Germany’s network regulator. By taking over Rosneft’s German arm, the agency gained control of stakes in the PCK refinery in Schwedt, MiRo in Karlsruhe and Bayernoil in Vohburg.

The refinery in Schwedt was particularly important to Germany because it is key to supplying petroleum products to eastern Germany. However, the government considered it a weak link in terms of energy security because it processed Russian oil and was unwilling to seek alternative suppliers of the commodity.