Despite EU sanctions: How Eastern Europe continues to depend on Russian oil

As of: December 5th, 2023 9:29 a.m

The EU’s oil embargo against Russia has been in effect for exactly a year. But Hungary, the Czech Republic and Slovakia have fought for exceptions – and now want to extend them.

Michal Majzner brought a gasoline canister to the Ministry of Industry in Prague. The activist is not afraid of running out of gas. He protests that the Czech Republic is still dependent on Russia’s oil drip.

Majzner pours red paint from his canister onto a banner. It says: Russian oil equals Ukrainian blood. He explains why on television: “We are currently paying Russia more for oil than on average in recent years. And Russia is certainly using this money to buy military technology and to pay soldiers – in its brutal war of aggression against Ukraine. “

The Czech Republic is currently importing more oil via the Russian Druzhba pipeline than before the war – the highest level since 2012. This pipeline is not affected by the Russia sanctions. The Czech Republic, Slovakia and Hungary use this exception. Poland and Germany, which are also connected to Druzhba, have renounced this.

Not an easy exit

Mazjner, together with the organization “No to Russian Oil,” is collecting signatures for a petition to Czech politicians. It should motivate the private pipeline operator to buy elsewhere. The government in Prague actually sees itself as a strong voice for Ukraine in the EU. But it’s not that easy to exit Russian oil, says Industry Minister Jozef Sikela. First, the pipeline network to Italy must be expanded.

“At the moment we are installing larger turbines and more robust engines. After the end of this project it will be possible to stop all deliveries from Russia via the Druzhba oil pipeline.” But that takes time: it might not happen until 2025. And it costs. On the other hand, according to energy experts, Russian crude oil is currently simply much cheaper than other crude oil.

Dependence on Russia

The Czech Republic is also indirectly dependent on Russian oil. The country does not produce enough fuel itself, but imports a large proportion from Slovakia. The neighboring country’s only refinery processes primarily Russian oil and supplies around a fifth of Czech demand. In some regions even half. But from today onwards that should be over. Then “Slovnaft” will no longer be allowed to export anything that comes from Russia.

“If this exception is not extended, it could lead to a destabilization of the supply of petroleum products and fuels,” warns Slovak Parliament Speaker Peter Pellegrini. “Not only here and in the Czech Republic, but also in the entire region.”

Oil deliveries despite sanctions

In addition, fuel prices are likely to rise. The Czech government therefore supports Slovakia’s request for an extension with the EU. And Hungary is also promoting it. Because “Slovnaft” belongs to the Hungarian oil company “MOL”. The switch to non-Russian oil is expensive and will take at least until 2025, it is said. The refinery can currently only process around 30 percent of other oil – not enough for the Czech Republic.

“We will of course be fully operational from December 5th, despite sanctions,” assures “Slovnaft” spokesman Anton Molnár. “We will continue to try to supply the Czech market. We have to see how successful we will be.”

No matter what Brussels decides, one thing is certain: exiting Russian oil from Slovakia and the Czech Republic will not be easy.

Marianne Allweiss, ARD Prague, tagesschau, December 5th, 2023 8:45 a.m

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