Finnish Supreme Administrative Court sides with Lahti in Teboil lease dispute

The Supreme Administrative Court of Finland has ruled in favour of the city of Lahti in a dispute over land lease agreements with fuel distributor Teboil, stating the city had valid grounds to refuse renewal due to economic risks tied to the company’s Russian ownership structure.

The court overturned a December 2024 decision by the Hämeenlinna Administrative Court, upholding the original 2022 decision by Lahti’s urban environment board not to renew the leases. It also rejected Teboil’s claim for reimbursement of legal costs.

The dispute began in 2022 when the existing lease expired and the board declined to renew it, citing financial risks linked to Russia’s actions in Ukraine and subsequent sanctions. The Supreme Administrative Court found the city’s assessment of these risks justified and its procedure fair.