EU Sanctions Deliberations Impact Czech Oil Supplies

Unipetrol, a Czech refiner, reports delays in Russian oil deliveries via the Druzhba pipeline. EU discussions over extending exemptions for Czech imports of Russian diesel remain unresolved. Despite the delay, Czech oil supply is stable with alternative routes. The exemption decision is crucial, impacting Czech oil strategies.

On Wednesday, Refiner Unipetrol announced disruptions in Russian oil deliveries to the Czech Republic, while EU envoys debated the continuation of exemptions for imports from Russia's neighboring Slovakia.

Though operations continue unaffected, Unipetrol has requested governmental intervention for an oil loan due to the unpredictable regulatory landscape. EU diplomats revisited discussions around the EU exemption enabling Czech imports of Russian-made products, a critical component of the proposed 15th sanctions package against Russia, with more talks scheduled for Friday.

Czech Industry Minister Lukas Vlcek confirmed the government's approval of a 330,000 metric ton oil loan from state reserves to Unipetrol. Although Czech supply remains stable, alternative delivery routes are operational. The looming decision on the exemption, which expires December 5, remains vital; meanwhile, Slovakia's oil deliveries remain unaffected, and the Czech Republic plans to cease Russian oil consumption by July next year following pipeline upgrades.

(With inputs from agencies.)