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Russia cuts of oil supply to Poland – what we know thus far

Russia has stopped the supply of crude oil to Poland via the Druzhba pipeline, the CEO of the Polish PKN Orlen, Daniel Obajtek, announced on Twitter over the weekend (25 February).

The cut in supply is not expected to have a major impact on Poland’s security of supply and retail customers. As confirmed by Mr Obajtek, only 10 per cent of crude oil came from Russia which will now be replaced with exports from other suppliers. However, new supply routes have not yet been announced.

Earlier this month, PKN Orlen said that the company is prepared to completely abandon Russian oil imports, should further sanctions be introduced. The EU’s current Russian oil embargo, which came into force on 5 February, is not applicable to supplies via pipelines.

During a press conference following this weekend’s developments, Mr Obajtek underlined that PKN Orlen hadn’t halted its remaining oil supplies prior to Russia’s decision as the company would have risked paying contractual fines, which would provide additional funds to the Russian state budget.

The halted supplies are contracted under PKN Orlen’s deal with the Russian Tatneft, which is set to expire by the end of 2024, according to PAP Business.

The oil supply cut comes after Poland’s delivery of battle tanks to Ukraine and President Biden’s visit to both Poland and Ukraine last week.

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