Russia to Block Kazakh Oil Flow to German Refinery, Berlin Says

Germany's energy security is facing a new challenge as Russia signals its intention to halt Kazakh oil supplies through the vital Druzhba pipeline to a refinery in eastern Germany from May 1. The German Energy Ministry confirmed that Rosneft Germany, the Russian state-owned company's German subsidiary, cited an order from the Russian energy ministry for this decision. While Moscow has not officially confirmed this to the German government, the move comes amid the ongoing war in Ukraine and a broader global energy crisis.

The PCK refinery in Schwedt, which relies on this pipeline, is a crucial supplier for the Berlin region. However, the German government has expressed confidence that the disruption will not significantly impact overall supply. Officials are closely monitoring the situation, particularly regarding kerosene availability, but note that the refinery has an alternative connection to the Baltic Sea port of Rostock, allowing for potential seaborne crude oil deliveries.

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the lack of Kazakh oil deliveries to the PCK refinery does not ultimately jeopardise the security of supply of mineral oil products in Germany, even if PCK Schwedt would have to operate at a lower capacity utilisation.

This development highlights the continued geopolitical tensions surrounding energy supplies. Germany's government previously placed Rosneft Germany under trusteeship following Russia's full-scale invasion of Ukraine and subsequent EU sanctions. The reliance on pipelines running through Russian territory, like Druzhba, underscores the vulnerabilities in the energy supply chain. From a German perspective, ensuring stable energy supplies while navigating these complex international relations remains a top priority, especially given the economic implications of any disruption.

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changes in the “output from the pipeline will not significantly restrict refinery operations”.