Participation in refinery: Alcmene successful in court
The Austrian company Alcmene GmbH has been successful in a legal dispute over its stake in the PCK oil refinery in Schwedt with a lawsuit against the Federal Ministry of Economics. The company took its case to the Berlin Administrative Court against the fact that the Ministry of Economic Affairs had stopped examining Alcmene's participation in the refinery in the fall of 2022. This was unlawful, the administrative court ruled on Tuesday evening after a lengthy hearing. According to a court statement on Wednesday, the acquisition of Shell's 37.5 percent share in the refinery was deemed to have been approved under the provisions of the Foreign Trade and Payments Ordinance.
However, the court's decision does not mean that the sale of the Shell share has been finalized. This is because arbitration proceedings are still ongoing between Alcmene and the energy company. Shell had agreed to sell its refinery stake to Alcmene GmbH in summer 2021, but terminated the contract in 2022, even after majority shareholder Rosneft asserted its right of first refusal. According to the administrative court, Alcmene initiated arbitration proceedings due to the termination of the contract.
The Austrian company, which belongs to the Estonian Liwathon Group, still wants to acquire a stake in PCK. One of Alcmene's lawyers, Tibor Fedke from the major law firm Noerr, commented on the court decision: "This is a very important step that strengthens Alcmene's legal position and gives the entire project momentum." The company is in close contact with Shell.
In 2022, the federal government took control of the PCK majority shareholder Rosneft Deutschland - a subsidiary of the Russian state-owned company Rosneft - through a trust administration in order to become independent of Russian oil.
The Federal Ministry of Economics announced that it would examine the ruling of the administrative court and then decide whether to appeal. "The ruling has no direct impact on the ownership structure of the PCK refinery." The ruling only relates to the question of whether or not the ministry had legally terminated the investment review procedure.
The Administrative Court stated the following about its decision: "The termination of the proceedings by the BMWK by means of an administrative act was unlawful because it lacked the necessary legal basis. Administrative proceedings that were initiated at the request of a party may only be discontinued with the consent of the applicant."
Alcmene's victory in court has significant implications for the ongoing arbitration processes regarding the Oil refinery in Schwedt. The court ruled that Alcmene's acquisition of Shell's 37.5% share in the refinery was approved under the Foreign Trade and Payments Ordinance, highlighting the importance of following legal processes in Energy sector transactions.
Source: www.dpa.com
