Russia to dam Kazakh oil flows to Germany through key pipeline | EUROtoday

Russia plans to cease oil exports from Kazakhstan to Germany through the Druzhba pipeline from May 1, threatening a key refinery which provides the overwhelming majority of diesel, petrol and heating oil wanted for town of Berlin.

The PCK refinery, situated within the city of Schwedt about 100 kilometers (62 miles) north of Berlin, receives oil provides through the pipeline. Previously run by Russian oil main Rosneft, the German authorities seized the refinery’s operations following Moscow’s full-scale invasion of Ukraine in February 2022.

Since 2022, the refinery has imported Kazakh crude oil in growing volumes, which is transported from the Central Asian nation, throughout Russian territory, to Berlin.

The German Federal Ministry for Economic Affairs and Energy confirmed the information to DW in an announcement.

“Rosneft Germany has informed the Federal Network Agency, acting as trustee, that, following instructions from the Russian Ministry of Energy, the transit of Kazakh crude oil through the Druzhba pipeline across Russian territory to the PCK refinery is prohibited as of May 1, 2026,” the ministry mentioned.

“The Russian Federation has not yet confirmed this to the German government. Rosneft Germany is currently assessing the implications and will adapt to any changes in the situation,” it added.

Reuters first reported the information on Tuesday, April 21, quoting a number of trade sources.

PCK: A significant refinery

The refinery provides Berlin and the encompassing area with greater than 90% of their petrol, diesel and heating gas.

However, the refinery isn’t utterly depending on oil from Kazakhstan. Since 2022, most of its oil comes from ports, akin to in Rostock and in Poland, and never through the Druzhba pipeline

However, an entire halt to deliveries through Druzhba would current a serious problem as about 17% of the virtually 12 million metric tons of oil a yr processed by the refinery comes through that hyperlink.

“The cessation of Kazakh oil deliveries to the PCK refinery does not ultimately jeopardize the security of supply of petroleum products in Germany, even though PCK Schwedt would have to operate at a reduced capacity,” a spokesperson for the Federal Ministry for Economic Affairs and Energy instructed DW.

The ministry mentioned Rosneft Germany, the subsidiary of Russian state-owned Rosneft which is now beneath the management of the German state, would “fulfil its obligations” and “will utilize existing options to ensure security of supply in Germany.”

PCK didn’t reply to DW’s request for remark. While the refinery is more likely to have sufficient options to take care of a lot of its provide, the information comes as Europe and different components of the world are grappling with one of the vital critical vitality crises in a long time.

The battle in Iran and the continuing closure of the Strait of Hormuz has decreased the move of oil to Europe and Asia, and has seen costs hovering.

Kerosene, wanted for jet gas and a key product from the PCK refinery, is in notably brief provide at current on account of the disaster. Airlines around the globe have been pressured to chop flights, with Lufthansa slashing 20,000 from its May to October schedule this week.

‘Threatening Europe’s vitality safety’

Russia has repeatedly tried to weaponize vitality exports because it started the full-scale invasion of Ukraine in 2022. The battle finally led the EU to pivot away from its reliance on Russian oil and gasoline.

Since the battle started, the EU’s dependency on Russian gasoline has fallen from 45% of general gasoline imports to 12% in 2025. For oil, the determine has fallen from 27% to 2%. The REPower EU Regulation goals to utterly finish the import of Russian oil and gasoline by 2027.

Benjamin Hilgenstock, a senior economist on the Kyiv School of Economics, mentioned Russia will proceed to threaten Europe’s financial and vitality safety every time it may possibly.

“This news illustrates, once again, that Russia will retain the ability to threaten European energy security until all imports from and through Russia have stopped,” he instructed DW.

“Evidently, even purportedly small overall volumes can be quite sensitive for certain countries, regions, or refineries. Germany, and the EU, should complete the exit from Russian fossil fuels as soon as possible, with no further delays to the REPowerEU agenda.”

Germany’s difficult vitality future

The Russian authorities has not but commented on the information. However, final month, Russian President Vladimir Putin overtly known as for his authorities to “explore the feasibility” of reducing vitality provides to Europe.

Kremlin spokesperson Dmitry Peskov lately criticized the EU for persevering with to sanction and reject Russian oil regardless of the continuing disaster within the Middle East.

Kazakhstan’s Energy Minister Yerlan Akkenzhenov has instructed that the closure of provides through the pipeline may be on account of technical issues precipitated on account of Ukrainian drone assaults on Russia’s vitality infrastructure.

Kazakhstan started sending the primary batches of crude to Schwedt in January 2023. Up till then, the refinery had been fed virtually completely with Russian oil.

While the most recent information is a blow, the refinery’s profitable pivot away from Russian oil since 2022 suggests it’s well-placed to seek out options ought to provide through Druzhba be reduce off completely.

Even earlier than the most recent information, the PCK refinery has been a supply of deep uncertainty for Germany’s vitality future.

Still owned by Russia however run by Germany, it’s presently exempted from US sanctions focusing on Rosneft. That exemption was on account of expire on April 29 however was prolonged in March, and not using a particular finish date being given.

The sanctions prohibit Western firms and clients coping with Rosneft however the German authorities intensely lobbied Washington to permit the refinery to proceed operations, given its strategic significance.

Edited by: Srinivas Mazumdaru