Germany has learned that Russia plans to halt the flow of Kazakh oil through the Druzhba pipeline to a refinery in eastern Germany starting May 1. The German subsidiary of Russia’s state-owned oil company Rosneft informed German regulators that the Russian energy ministry had ordered the halt, according to Germany's energy ministry. Moscow has not confirmed the decision directly to the German government.
This move occurs amidst Russia’s war against Ukraine and a global energy crisis. The situation has caused significant disruptions to global oil and gas markets. Rosneft Germany is assessing the implications of the pipeline closure for the refinery and exploring options to ensure security of supply in Germany.
The PCK refinery, located near the Polish border, supplies a substantial portion of the Berlin region with fuel. However, the German government expressed confidence that the impact of reduced pipeline output would be limited. Officials are closely monitoring the availability of kerosene.
The economy ministry stated that the lack of Kazakh oil deliveries to the PCK refinery does not ultimately jeopardize the security of mineral oil product supply in Germany, even if the refinery operates at a lower capacity. The refinery has an alternative pipeline connection to the Baltic Sea port of Rostock, which could allow for seaborne crude oil deliveries.
The Kazakh oil is currently transported via the Druzhba pipeline, which passes through Russian territory. One branch of the pipeline runs through Belarus and Poland to Germany, while another goes through Ukraine to Hungary. The German government took control of Rosneft Germany in the wake of Russia’s 2022 invasion of Ukraine and subsequent European Union sanctions on the Russian energy sector. Kazakh oil was being sourced for the PCK refinery to replace previous Russian crude imports.