The Czech Republic may begin importing oil from Ukraine as early as the end of this year. Negotiations regarding the potential supply of Ukrainian oil are underway between representatives from Kyiv and Prague, as well as the Polish energy company Orlen, which owns Czech oil refineries.
This is reported by Finway
Reasons and Conditions for Potential Cooperation
The proposal for oil export was initiated by Ukraine. The reason is that nearly all Ukrainian oil refineries have been destroyed due to Russian shelling, making the processing of domestic raw materials virtually impossible in the country. Halting oil production is technically difficult, as it is linked to the extraction of natural gas, which is necessary for Ukrainian industry and heating.
For Orlen, purchasing Ukrainian oil not only means supporting Ukraine during a challenging time but also presents a profitable economic opportunity, as the price of Ukrainian raw materials is lower. The project is also supported by the Czech pipeline company Mero: for them, it is a chance to restore the operation of the Czech section of the “Druzhba” pipeline, which is currently unused after the country abandoned Russian oil.
Scale and Technical Details of Future Supplies
The volumes of potential supplies are estimated at 75,000-100,000 tons per month, which accounts for nearly 15% of the annual oil consumption in the Czech Republic, or about 7 million tons per year. For the Litvínov oil refinery, this volume could provide up to 20% of its capacity.
The Slovak pipeline operator Transpetrol confirmed that they have been approached regarding the organization of transporting Ukrainian oil. Its composition is similar to that of Russian oil, so connecting to the existing infrastructure for supplies does not pose significant technical challenges.
“The initiative for the proposal came from Ukraine, as nearly all of its oil refineries have been destroyed by Russian strikes, and there is virtually nowhere for Ukraine to process its own oil. Stopping production is not possible, as it is technically linked to the extraction of natural gas needed for industry and heating.”