This file photo shows the logo of Russia's oil producer Rosneft on its headquarters in Moscow, Russia, on August 13, 2021. File photo / AFP
Leipzig: A German court on Tuesday threw out a case filed by Russian oil giant Rosneft against Berlin for taking control of its German-based refineries in the wake of the war in Ukraine.
The German government in September took control of Rosneft's German subsidiaries, which account for about 12 percent of oil refining capacity in the country, and placed them under the trusteeship of the Federal Network Agency.
Berlin said its dramatic move was necessary to counter "a threat to the security of energy supply" as the refineries concerned included the key PCK Schwedt site that supplies most of the oil consumed in the capital and the surrounding region, including Berlin-Brandenburg airport.
The Federal Administrative Court, which is the first and final authority on the case, found in favour of the government.
There were indications of capital flight and disruptions of Russian crude supplies that could have caused the refineries' collapse, it said.
The facilities' business partners including banks and insurers were also increasingly spooked by Russia's stake in the companies, and were planning to pull out of their cooperation, added the court.
Under Germany's law, adverse impact on the security of supply was the "threshold" for placing companies under trusteeship.
"The ministry had exercised its discretion according to these standards without error," the court said.
Following the court decision, the economy ministry said it was prolonging its temporary control on the refineries beyond Wednesday's expiration date.
Already in April, Germany took the unprecedented step of temporarily taking control of Russian gas firm Gazprom's German subsidiary, after an opaque transfer of ownership of the company set alarm bells ringing in Berlin.
Gazprom, which before the war supplied around 55 percent of Germany's natural gas needs, began slashing deliveries through the crucial Nord Stream 1 pipeline in the wake of the February invasion, before halting the flow altogether at the end of August.
