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About Commodity Insights
27 Feb 2023 | 10:50 UTC
By Robert Perkins and Rosemary Griffin
Highlights
Comes after Poland delivered battle tanks to Ukraine
Rosneft crude supply contract expired in January
Tatneft supply contract is due to expire in 2024
Poland's largest oil refiner PKN Orlen said Feb. 25 that its remaining Russian crude supplies through the Druzhba pipeline had been suspended by Russia.
Russian pipeline operator Transneft confirmed the suspension of crude exports, blaming "operational changes" in the export schedule.
"Pumping to Polish refineries was due to be carried out in the last 10 days of February. However, orders with confirmed supplies and payment for transit were not issued," a Transneft spokesperson said. "In addition, operational changes were made to the schedule, excluding deliveries to Polish consumers. In this regard, Transneft is not transporting oil to Poland."
Poland has pledged to stop buying most of its Russian crude supplies, the majority of which were delivered via the northern leg of the Druzhba pipeline system, which remains exempt from the EU's oil embargo on Russia.
"We effectively secure the supply of raw materials. Russia stopped oil supplies to Poland, for which we are fully prepared. Only 10% of raw materials come from Russia now and we will replace it with oil from other directions. This is the effect of the diversification that we have carried out in recent years," PKN's CEO Daniel Obajtek wrote on Twitter. "We will provide more information on oil supplies to Poland during Tuesday's conference on development projects," he added.
The suspension came a day after Poland delivered the first four German-made Leopard 2 battle tanks to Ukraine.
Following the expiration of a long-term supply contract with Rosneft last month, PKN has one remaining supply contract with Tatneft that is due to expire at the end of next year. The Polish government has been pushing for crude oil supplies via the northern string of Druzhba that delivers oil to Poland and Germany to be subject to EU sanctions. That would enable PKN to avoid financial penalties for breaching the Tatneft contract.
Crude oil supplies to PKN's Unipetrol refineries in the Czech Republic have continued without disruption.
Following Russia's invasion of Ukraine a year ago, PKN ramped up more expensive seaborne deliveries of crude oil from Saudi Arabia and the North Sea for Poland's largest refinery in Plock that is connected via pipeline to the Naftoport terminal in Gdansk.