The European Union has proposed to formalize the stoppage of Russian oil flows channeled towards Germany and Poland.
With a repeal of EU sanctions, the two nations have been able to continue receiving oil through the northern section of the Druzhba pipeline. Despite this, both have already stopped taking crude through the link, fulfilling previous promises to taper off.
However, there is a proposal to end its size, according to documents seen by Bloomberg. The derogation had been granted when the EU decided to ban most Russian oil imports last June.
While this step would be largely symbolic given that the two nations already halted, the cut itself forced several refineries to engage in challenging logistics to access alternative crudes. At least one of them, the PCK Schwedt plant near Berlin, has been forced to produce less fuel for the region it serves.
Exemptions allowing flows on the southern leg of the link, which supplies Hungary, Slovakia and the Czech Republic, will remain in place.
Germany and Poland averaged about 480,000 bpd of imports through Druzhba in 2022. Those in the three southern nations averaged almost 290,000 bpd, a level that was down very slightly this year.
The proposal to end the repeal would be part of the EU’s 11th package of sanctions following Russia’s invasion of Ukraine. It would need the support of all member states and could change before that happens with ongoing talks.
Poland had been pushing to sanction the northern Druzhba route, as it would otherwise have been legally difficult for Warsaw to terminate its contracts and fulfill a promise it made last year to halt Russian oil imports. The nation terminated its last supply contract in the spring after Russia halted shipments in February.
Since Russian crude supplies were halted, a small amount of Kazakh oil has flown through the Druzhba. There is no discussion of the ban, as imports from other third countries are allowed, including if the oil goes through Russia.
To clarify this point, the EU proposals also include exclusions to provide services necessary to enable the purchase, import or transfer of oil originating in Kazakhstan and to maintain the Caspian Consortium (CPC) Gas Pipeline.
The main aim of the new package is to crack down on circumvention of the restrictions, with proposed measures also including a ban on ships that have breached entry bans in EU ports, targeting ships that switch off their navigation systems and tools to restrict trade in sanctioned technologies that reach Russia through third countries.
