Orlen is to increase its purchases of Russian oil for refineries in the Czech Republic. PKN Orlan explains

Russian crude oil continues to flow to Europe through the Drushka pipeline. EU sanctions do not apply to the transport of Russian oil via land pipelines. The southern branch of the Drushpa pipeline, which passes through Ukraine, serves Hungary, Slovakia and the Czech Republic.

Two Reuters sources reported that Russian Urals oil will be delivered to the EU via the Druzhba pipeline. It is expected to increase by 16% in June. Compared to May. As indicated, EU refineries are trying to secure more oil for fear of disrupting transit through Ukraine.

“The recent escalation in Ukraine, damage to major infrastructure facilities, is worrisome … it’s better to order more now,” one source noted, specifically referring to the destruction of the Nova Kakyivka dam.

Hungarian energy company MOL, the main recipient of Urals crude in Hungary and Slovakia, is set to receive about 900,000 tonnes this month, according to Reuters sources. Tons of raw material through the Druzhba pipeline, compared to 750,000. tons in May.

A refinery in Litvino owned by Czech company Arlan Unipetrol, part of the Arlan Group, is also set to boost Urals oil imports. Reuters, citing its sources, said Arlan Unipetrol would buy up to 430,000 units this month. Tons of Urals oil, in May it was 400 thousand. Tone.

“Oil continues to arrive in Hungary via the Druzhba pipeline and we do not expect any delays in the coming months,” MOL said, as quoted by the agency, but declined to comment on monthly purchases. Reuters added that PKN Arlan said it did not comment on oil purchases or contract details.

However, a Polish statement of concern appeared on Twitter. “Orlen has only one contract for the supply of Russian oil, signed back in 2013. Supplies are made to the Czech Republic, and this is necessary to ensure the security of raw materials and fuel in this country,” emphasized PKN Orlen’s press office.

Company representatives pointed out that “there are infrastructural limitations that cannot fully cover Czech demand for oil from directions other than Russia.” “Therefore, the Czech government has asked Russia not to apply sanctions on oil and to continue supplies. The state-owned company Mero is responsible for the expansion of pipelines in the Czech Republic,” the statement noted.

At the same time, it was assured that “Orlan supports the Czech government, which has taken steps to expand the capacity of the pipelines, which will help increase supply from alternative directions and become independent of supplies from Russia.” At the same time, it was added that Arlen “already, whenever possible, imports oil to the Czech Republic from directions other than Russia.”

Arlen Unipetrol Company includes, among others: refineries in Litvinov and Kralupi. “The group has two refineries in the Czech Republic. The plant in Kralupy does not use Russian oil,” we read.

The press office emphasized in a statement, “Orlan, like other European fuel companies, fully complies with the international sanctions imposed on the supply of oil from Russia.”

The company stopped importing Russian oil by sea during Russia’s aggression against Ukraine, long before European sanctions on the product were introduced in December 2022. As it added, “Currently, there are no deliveries of Russian oil to Poland, which accounted for almost 100 percent of the processing of the refinery in Płock in 2014.”

Since the beginning of the Russian invasion of Ukraine, two Orlen agreements were in force for the supply of Russian oil to Poland. In April of this year, the concern from Płock announced the termination of the contract with the Russian company Tatneft for the supply of oil from this direction. This happened after the Russian side stopped the supply to Poland through the Drushpa pipeline. Arlen’s contract with Tatneft was originally set to expire in 2024. The contract with Rosneft expired at the end of January this year.

However, LPG still goes from Russia to Poland. In the first quarter of 2023, our country imported 377.2 thousand from this direction. Tons of LPG – As per data from Ministry of Climate and Environment. So far, the EU Council has not decided to introduce a ban on Russian LPG imports.