Russian oil flow to Czech Republic expected to resume after halt
- Sources say interruption due to payment issues resolved
- Czech refiner, pipeline operator say cannot confirm resumption expected
- Czechs say have enough reserves, alternative supply to handle Druzhba halt
Russian oil flows to the Czech Republic via the Druzhba pipeline were seen resuming on Friday after payment issues linked to the transit via Ukraine, which caused a halt, have been sorted, two sources familiar with the matter said on Thursday.
Russian crude oil flows to the Czech Republic through the Druzhba pipeline remained halted on Thursday, extending a stoppage for unknown reasons which Czech refiner Unipetrol first identified on Tuesday, a company spokesman said.
Two sources with knowledge of the matter said the halt in supplies from Russia's Rosneft was the result of payments difficulties between transit country Ukraine and Russia, but a workaround had been found.
Refining at the Litvinov refinery, which uses Russian crude, was running using the company's reserves which could last a week before it taps state reserves, a spokesperson for Unipetrol, a unit of Poland's Orlen, said.
The Czech government approved on Wednesday lending Unipetrol 330,000 tonnes of oil from state reserves.
Unipetrol and Czech state officials have said the Druzhba halt was not affecting supplies of products to the Czech market. In 2019, the country coped with a two-month interruption of flows through Druzhba without an impact on fuel supplies.
MERO said on Thursday it was still investigating the Druzhba delivery delays.
The country imports Russian crude through Druzhba and other crudes through the TAL pipeline running from Italy to Germany and on to the Czech Republic. It wants to stop all Russian oil imports from July next year as it completes capacity expansion of the TAL pipeline.
The unexplained interruption occurred as European countries are debating a possible extension of an EU exemption from sanctions on Russia that allows the Czech Republic to import diesel and other products made from Russian oil, made in neighboring Slovakia.
The exemption lapses on Thursday, but diplomats said talks would continue on Friday after a non-conclusive session on Wednesday.
The Czech Republic has said it was not asking for the exemption to continue but Slovakia has been keen to keep it in place.
Sources have said that if other countries are keen to extend, the Czechs may agree to a six-month extension on the Slovak diesel imports, matching the expected end of Russian crude supplies to the Czech Republic.
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