“Russia does not sell oil and natural gas, but still trades petrochemicals in Europe. This brings profit not only from hydrocarbons, but also from processing, said Daniel Obaitek, president of PKN Orlen, in an interview with the Financial Times. He added that the ban on cheap oil imports from Russia costs the company $27 million a day.
PKN Orlen CEO Daniel Obaitek told the Financial Times that despite the sanctions, Russia continues to flood European markets with oil and petrochemicals. “I believe that the sanctions should be tougher. This should not be just a ploy to improve Europe’s image in the media. Russia does not sell oil and natural gas, but still trades petrochemicals in Europe. This gives a margin not only for hydrocarbons, but also for processing. Not to mention fertilizers and other products,” Obaitek said.
Millions of dollars lost
The Polish energy giant’s president estimates that the ban on cheap oil imports from Russia means a loss of $27 million a day for Orlen. This loss is due to the price difference between Urals oil, which currently trades at $54 a barrel, and Brent oil, which trades at $75. Petrochemical companies cannot buy cheap Russian oil, so they have to buy more expensive oil.
“I would not call it a loss: it is a matter of non-support for Russia. This is the market value that applies to every company that does not import oil from Russia,” said the president of Orlen.
Pipeline to the Czech Republic
Despite the sanctions, Orlen still buys some Russian oil, which is transported via pipeline to a refinery in Litvinov, Czech Republic. Sanctions on oil supplies to the European Union affected only raw materials delivered by sea, oil pipelines can still operate legally.
Russian oil is no longer supplied to Poland. In early February, Russia turned off the tap, and since the beginning of March, the contract with Rosneft ceased to operate. However, the Czech Republic is in a more difficult geographical position. Without access to the sea, they cannot count on oil supplies by tankers from other directions than Russia.
“The complete replacement of Russian oil requires improving the logistics of oil supplies, which we are working on with the Czech government,” Obaitek said.
Source: Wprost
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