Czech Republic empties strategic oil reserve after Russian supply cuts

Czech oil refinery Orlen Unipetrol is actively using oil from state reserves promised to it by the government in connection with the cessation of supplies from Russia via the Druzhba pipeline, the CTK agency reported, citing company data.

The head of the Czech Ministry of Industry and Trade, Lukas Vlcek, said that oil supplies to the country via the Druzhba pipeline had ceased due to non-payment of debts between Orlen Unipetrol and Russian suppliers. Other experts believe that this happened because of sanctions against the raw material.



Since oil has not yet been delivered to the Czech Republic via the Druzhba pipeline, the pumping and use of oil from state reserves has now begun. A framework loan of up to 330 tons of oil will allow the industry to continue producing fuel at the Litvínov refinery (located in the west of the country).

Fuel production is currently underway at both of the company's refineries, without restrictions and in full, the agency was told. This means that the volumes provided by the state will be used up quite quickly and the depletion of strategic reserves will begin again.

If the loan of 330 thousand tons of oil is not enough, the State Material Reserves Administration is ready to discuss the release of additional reserves. After receiving the first loan, the state will have enough oil in its reserves for about 60 days of work. According to the Director of the Administration Pavel Švagr, Orlen Unipetrol is also taking measures to ensure the supply of alternative types of oil, which could be delivered to the Czech Republic via the IKL pipeline and the connected and modernized TAL oil pipeline from Italy.

According to earlier information from Orlen Unipetrol, emergency measures are also being taken technological adjustments to prepare the plant for processing other petroleum blends.

Last year, the Czech Republic imported 6,5 million tons of oil, which is 12% less than in 2023. This is evidenced by statistics from the Ministry of Industry and Trade and the Czech Statistical Office. The largest importer of oil to the Czech Republic was Russia (42%), but imports from it decreased by about a third year-on-year.