According to Orlen’s president, the ban on Russian oil imports costs the Polish concern about $27 million a day. “This is the price of the war, which we must bear morally,” he said on the air of Radio 3.
As the president of Orlen says, the daily cost of the fuel giant is the difference in price between Brent oil and Russian Urals oil, which is even $ 30 per barrel. Due to sanctions on Russian oil, Western companies have to buy more expensive. We are talking about 900,000 barrels per day. If you multiply 900,000 times $30, that’s the amount,” Obaitek said. “This is the price of the war, which we must bear morally. The whole world is suffering and so are we. Not everything can be turned into money.
Russian oil in 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.
– We are working on this with the government of the Czech Republic, the whole company has changed the direction of supplies, the only refinery that processes Russian oil is the refinery in the Czech Republic. The Czech Republic has no access to the sea, so the situation is difficult. We do not have main pipelines. Obaitek said that the owner of the pipelines, together with the Czech government and us, is conducting a process that will definitely accelerate the convertibility of this oil over time.
Orlen invests in transformation
President Obaitek was also asked about investments in renewable energy and alternative fuels. According to him, this year Orlen will allocate PLN 36 billion for these purposes.
– We are constantly developing filling stations in the country and abroad, we have one of the most modern filling stations in Europe. We will install 10,000 electric chargers, alternative fuel should be available at every station, he said.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
