Czech Republic Faces Oil Delivery Challenges Amid EU Exemption Debate

Czech refiner Unipetrol experienced delays in Russian oil deliveries via the Druzhba pipeline ahead of an EU ruling on an import exemption. Czech officials approved an oil loan to counter disruptions, exploring alternatives amid ongoing EU discussions. The exemption expires on Dec. 5, with possible extension proposals in debate.

Czech refiner Unipetrol on Wednesday reported delays in Russian oil deliveries via the Druzhba pipeline, coinciding with an impending European Union decision on the nation's import exemption.

The exemption permits the Czech Republic to source products made from Russian crude from Slovakia. While Unipetrol's operations remain unaffected, the company sought governmental assistance with an oil loan to navigate the dynamic regulatory landscape. EU diplomats gathered in Brussels to deliberate over the continuation of the Czech Republic's exemption, fundamental to its import of diesel and other oil products.

Czech Industry Minister Lukas Vlcek disclosed that the government had agreed on lending Unipetrol 330,000 metric tons of oil from state reserves. Despite the delivery delays, Czech pipeline operator Mero affirmed that the nation's oil supply was secure, utilizing alternative routes. The import exemption runs out on December 5, with insiders hinting at a potential six-month extension. The Czech Republic has previously indicated it won't seek an exemption extension.

(With inputs from agencies.)