Czech oil supply hit by pipeline pause, government steps in
According to Czech media, the flow of Russian crude oil through the "Druzhba" pipeline to the Czech Republic, which accounts for 58% of the country's oil demand, has stopped. Orlen Unipetrol, the only company in the Czech Republic that processes oil, confirmed these reports.
5:18 PM EST, December 4, 2024
However, the reason for the supply interruption remains unclear. According to Czech media, the lack of oil is most likely due to administrative issues.
Nothing suggests that the deliveries were halted by Russia, wrote the Novinky portal.
The Slovak refinery Slovnaft, which receives Russian crude through "Druzhba," has not reported any delivery issues. Meanwhile, Orlen Unipetrol's spokesperson Pavel Kaidl mentioned on social media that the problem occurred on the supplier's side.
"The current delivery has been delayed," he wrote.
The Czech Republic and the embargo on Russian oil
Kaidl emphasized that the company has a week's worth of oil reserves but wants to ensure continuity and intends to borrow crude from the state's strategic reserves.
At a Wednesday meeting, the Czech government decided to loan the company 330,000 tonnes of oil, which is enough for over a month of production, according to the Minister of Industry and Trade, Lukasz Vlczek.
After the start of the Russian aggression in Ukraine, the Czech Republic negotiated an exemption from the embargo on the supply of Russian strategic resources, which expires at the end of 2024. The authorities in Prague had previously announced that they do not intend to extend this period. Russian oil is to be replaced by supplies through the IKL pipeline, connecting Bavarian Ingolstadt with Czech refineries in Kralupy and Litvinov. Near Ingolstadt, the IKL connects with the trans-alpine TAL pipeline, in which the Czech Republic has stakes. Through the Alps, oil flows from the ports in Trieste.
Politico reported in October that the Czech refinery Orlen Unipetrol earned over 1.2 billion euros from importing cheaper Russian fuel. Research indicates that the Czech Republic spent five times more on Russian oil than on aid to Ukraine, totaling 7 billion euros.
