Wednesday, November 1, 2023

Polish Refiner: Russia Halts Oil Supply to Poland

Date:

In response to Poland’s delivery of Leopard tanks to Ukraine, Russia has halted oil supplies to Poland via the Druzhba pipeline. PKN Orlen Chief Executive Daniel Obajtek has stated that the company is prepared for the halt and will replace the 10 percent of crude oil from Russia with oil from other sources. The company also noted that deliveries of petrol and diesel to their clients would not be affected.

The halt in pipeline supplies comes after US President Joe Biden visited Warsaw and Kyiv this week in a show of support for Ukraine a year after the invasion. The European Union also agreed on a 10th package of sanctions on Russia. In response, Poland delivered four Leopard tanks to Ukraine already and is prepared to deliver more quickly.

Prior to the EU embargoed seaborne supplies from Russia, Orlen stopped buying Russian oil and fuels via the sea. The company now sources oil from Western Africa, the Mediterranean, the Gulf and the Gulf of Mexico. It also has a supply contract with Saudi Aramco as of 2022, with seaborne supplies reaching Poland via Naftoport, an oil terminal in Gdansk on the Baltic Sea.

Overall, the halt in Russian oil supplies to Poland is a direct response to Poland’s delivery of Leopard tanks to Ukraine. PKN Orlen is prepared for the halt and will replace the 10 percent of crude oil from Russia with oil from other sources, while deliveries of petrol and diesel to their clients will not be affected. The European Union has also agreed on a 10th package of sanctions on Russia, while Poland is prepared to deliver more Leopard tanks to Ukraine quickly.

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