Polish state energy giant Orlen explains increased Russian oil imports

Polish state energy giant Orlen has explained why a Czech company it owns has increased purchases of Russian oil this month, despite Poland’s tough stance on achieving energy independence from Moscow.

Orlen notes that the Czech Republic, which is landlocked, still has to rely on Russian oil supplies through the Druzhba pipeline. Polish Prime Minister Mateusz Morawiecki has also defended the firm, saying that “we don’t want to prevent the Czechs from being able to drive their cars”.

Reuters first reported last week that Russian oil supplies to Europe via the southern Druzhba pipeline will rise by around 16% in June compared to May. Much of that increase is accounted for by Hungarian energy firm MOL. But Orlen Unipetrol has also increased its purchases.

PKN Orlen – the Polish firm that owns 100% of Orlen Unipetrol, which is the only processor of crude oil in the Czech Republic – told Reuters that it never comments on oil purchases and contractual details. However, the day after Reuters’ report was published, Orlen did in fact issue a public statement.

“Infrastructural constraints make it impossible to fully cover Czech demand for oil from directions other than Russia,” wrote Orlen. “Deliveries [of Russian oil] are necessary to ensure the security of raw materials and fuel in this country.”

This is why, noted Orlen, oil supplies via the Druzhba pipeline were exempted from the EU’s ban on Russian oil imports last year. The firm added that it supported efforts by the Czech government to become independent of Russian oil, and pointed out that it no longer imports any Russian oil into Poland.

Last month, the Polish deputy prime minister – during a visit to Prague alongside Orlen CEO Daniel Obajtek – said that Poland wants to help the Czech Republic move away from Russian oil but urged it to change its tax laws to facilitate more investment in Unipetrol.

Shortly after Russia’s invasion of Ukraine, the Polish government pledged to end all imports of Russian oil, gas and coal by the end of 2022. While it managed to do so for coal and gas, at the start of this year it was still receiving oil through the Druzhba pipeline under a long-term contract.

In February, Russia unilaterally ended those oil supplies to Poland, prompting Orlen to announce legal action against the Russians.

At a press conference on Friday, Morawiecki was asked about Orlen’s continued import of Russian oil to the Czech Republic.

“We have access to the sea, [but] the Czech Republic does not,” said the prime minister, quoted by the Polish Press Agency (PAP). “They are therefore dependent on oil pipelines…We do not want to prevent the Czechs from being able to drive their cars.”

Morawiecki was also asked about the fact that, despite its tough rhetoric on Russian energy imports, Poland continues to be the EU’s largest buyer of liquefied petroleum gas from Russia. LPG, which is not under EU sanctions, is used in particular for powering cars in Poland.

“Poland adheres strictly and meticulously to all sanctions,” said the prime minister. “While you [the journalist asking the question] want Poles who have LPG-powered cars not to be able to drive them, we do not.”

Main image credite: Orlen Unipetrol (press materials)

Daniel Tilles

Daniel Tilles is editor-in-chief of Notes from Poland. He has written on Polish affairs for a wide range of publications, including Foreign Policy, POLITICO Europe, EUobserver and Dziennik Gazeta Prawna.