Poland Seeks German Support To Sanction Russian Druzhba Pipeline

Poland is seeking German support to impose EU sanctions on the Polish-German section of the Druzhba crude pipeline so that Poland can abandon a deal to buy Russian oil next year without paying penalties, sourced told Reuters.

• The EU has pledged to stop buying Russian oil via maritime routes from 5 Dec, but Druzhba is currently exempt from sanctions.
• Polish refiner PKN Orlen has a long-term deal to purchase Russian oil via the pipeline and would need to pay penalties to break the contract.
• The southern section of the pipeline supplies Hungary, Slovakia and the Czech Republic which, unlike Poland and Germany, would struggle to diversify their oil imports.
• Poland and Germany are also in the final stage of talks on a memorandum of understanding on oil logistics, which could unlock non-Russian flows and help Poland's top refiner pursue its interest in Schwedt.
• Germany remains committed to not using Russian oil from 2023 and is working on a solution with Poland to secure the supply of Schwedt, a spokeswoman for the economy ministry said.
• Germany has put Schwedt under a six-month trusteeship, stopping short of nationalising the refinery, and is seeking ways to supply it with oil.
• Poland and Germany promised in spring to try to end Russian oil imports via Druzhba's northern leg by the end of year but Orlen remains tied to its contract with Russian oil and gas company Tatneft.