Unipetrol, a refining unit of Polish refiner Orlen PKN, has reported delays in Russian oil deliveries to the Czech Republic via the Druzhba pipeline. This comes as EU diplomats are in discussions regarding the future of exemptions that allow the Czech Republic to import products derived from Russian crude oil.
Key Highlights:
Delivery Delays:
Unipetrol confirmed delays in oil deliveries but stated that its operations remain unaffected.
The company has approached the government for an oil loan due to the “dynamic situation in the regulatory environment.”
EU Sanctions Discussions:
On Wednesday, EU envoys met in Brussels to discuss a proposed 15th package of sanctions against Russia, including the future of the exemption for the Czech Republic to import diesel and other products from Russian oil.
Talks are set to resume on Friday, with the current exemption expiring on December 5.
Government Support:
Czech Industry Minister Lukas Vlcek announced that the government approved a loan of 330,000 metric tons of oil from state reserves to support Unipetrol.
Alternative Supply Routes:
Czech pipeline operator Mero is investigating the delivery delays and has implemented alternative supply routes, confirming that the oil supply is secure through the TAL and IKL pipelines.
Future of Exemption:
A six-month extension of the exemption is one option being considered, but it requires unanimous agreement among EU member states. If no consensus is reached, the exemption will lapse.
The Czech Republic has indicated it does not plan to extend the exemption.
Slovakia’s Situation:
Oil supplies to Slovakia remain uninterrupted, according to its pipeline operator.
Long-Term Goals:
The Czech Republic aims to eliminate its consumption of Russian oil by July next year, facilitated by upgrades to a transalpine pipeline that will increase shipments from western sources.