Czech Republic concludes exemption from Russian oil imports

In response to ongoing geopolitical tensions, the Czech Republic has decided not to pursue an extension of its exemption from the European Union’s ban on importing Russian oil products. This decision was confirmed by the Ministry of Industry and Trade on November 22, 2024. The current exemption is set to expire on December 5, 2024. Alongside the Czech Republic, Slovakia and Hungary were also granted exemptions, but the Czech government believes it has sufficient measures in place to transition away from Russian oil dependence. The Czech Republic plans to achieve this reduction by expanding the TAL pipeline, which is expected to double the capacity of oil delivered to the country to eight million tons annually starting in 2025. Currently, the Czech Republic sources its oil primarily through the Druzhba pipeline, which supplies oil from Russia, while other imports come via the IKL pipeline from Germany and the TAL pipeline. Marek Vošahlík, spokesperson for the Ministry, indicated the government’s view that there is no justification for extending the exemption given the steps already being taken to secure alternative supplies. The Czech Republic mainly imports Russian oil products through a supply chain linked to the Slovak refinery Slovnaft, owned by the Hungarian firm MOL. However, Slovakia has stated it does not intend to cease oil imports from Russia in the immediate future. The Czech government is assessing options for replacing Slovnaft-sourced oil. Measures being considered include alternative supply imports from other countries, potentially facilitated through rail transport. In light of the end of the exemption, MOL has raised concerns about potential fluctuations in fuel supply, yet Orlen Unipetrol, the country's sole oil processing company, has confirmed it has adequate supplies secured to maintain uninterrupted production, and it is prepared to redirect exports to the domestic market as necessary.