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Poland loses billions from Russian oil ban – FT – RT World News

Warsaw state oil company forced to find more expensive resources, losing $27m a day

The chief executive of Polish state oil company PKN Orlen told the Financial Times on Sunday that it was losing $27 million a day due to the price difference between cheap Russian oil and more expensive sources. The company wants tougher sanctions even as Warsaw’s ban on Russian crude hurts its coffers.

Poland pledged last March to stop importing Russian oil by the end of 2022. For PKN Orlen, this means it is now buying oil for $30 a barrel more than before, Chief Executive Daniel Obagitek told the paper.

“I wouldn’t call it a loss,” he insisted. “This is the market cost that applies to every company that does not import oil from Russia.”

While the EU bans seaborne oil imports from Russia, it has so far exempted Russian crude transported along the Druzhba pipeline, which links Russia’s hinterland with Ukraine, Belarus, Poland, Hungary, Slovakia, the Czech Republic, Austria and Germany.

Kazakhstan sends oil to Germany via Russia - minister

Poland has been one of the staunchest supporters of an EU-wide ban on Russian energy, but PKN Orlen continued to buy Russian oil for domestic consumption via the Druzhba line, even suing the pipeline’s Russian operator, Tatneft, in March when the flow was grounds for non-payment. And stop.

The company terminated its contract with Tatneft last month but continues to process Russian oil at its refinery in the Czech Republic.

“Complete replacement of Russian oil requires improved logistics of oil supply and we are working with the Czech government,” Obajtek offered an explanation to the Financial Times.

Obajtek condemns German purchase of Kazakh oil via Druzhba line, claims “The German side should do a better job of reconsidering the morality of what they’re doing.” He went on to claim that despite the sanctions, Russia was using middlemen to sell refined petrochemicals in Europe.

“Summarize,” He said. “I think the sanctions should be tougher.”

Obajtek criticized Germany’s economic interest in using Russian pipelines to import Kazakh oil.He explained that his company was “very interested in the German market,” and plans to sell oil to the country “A diverse choice.”

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