German court upholds takeover of Russian subsidiary of Rosneft
A German court upheld a decision Tuesday to place two subsidiaries of Russian oil giant Rosneft under the control of German authorities, dismissing the Russian company’s complaints.
The Federal Administrative Court said the Economy Ministry’s decision to place Rosneft Deutschland GmbH and Rosneft Refining and Marketing GmbH under the purview of the Federal Network Agency regulator was legal.
The decision was taken last September, amid growing fears for Germany’s energy supply, which aims to end its dependence on Russia.
What did the court say?
Rosneft’s complaints blamed the government for taking over subsidiaries without a prior hearing. They argued that the action was disproportionate.
The court said the German government was not obliged to give Rosneft a hearing. He added that indications of a possible capital withdrawal fueled concern about the collapse of subsidiaries.
The court said Russia’s stake in the subsidiaries scared business partners, including banks and insurance companies, who planned to pull out.
“The ministry exercised its discretion in accordance with these standards without error,” the court said.
Source: DW
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