Slovakia plans to hold negotiations with the European Union on the extension of the exemption from sanctions on Russian oil.
Points of attention
- Slovakia plans to hold negotiations with the EU regarding exemption from sanctions for the processing of Russian oil.
- In the case of not being allowed to process Russian oil, the Slovnaft AS refinery and the Hungarian company Mol Nyrt. will face serious consequences.
- The EU imposed sanctions against Russian oil, but some countries, including Slovakia, used exemptions to obtain Russian oil through temporary exemptions.
- Russian oil supplied by the Druzhba pipeline remains cheaper than alternatives, making it difficult to switch to other sources of supply.
- Slovakia is actively working on preserving the possibility of processing Russian oil and expanding its capacities for this purpose.
Slovakia wants to process Russian oil
This was stated by the Minister of Foreign Affairs of Slovakia Juraj Blanar.
Slovakian oil refinery Slovnaft AS, owned by Hungary's Mol Nyrt., processes Russian oil into fuel for shipment to the Czech Republic and wants to continue doing so after an exemption from sanctions expires on Dec. 5.
Without the extension of the permit, the use of Russian oil will be limited to supplies to the Slovak market.
The refinery, like Mol, is expanding its capacity to process other types of oil, although the full transition will take years.
If Slovnaft AS is unable to process Russian oil, it will have "enormous consequences", Blanar said in Budapest on Thursday after meeting with his Hungarian counterpart Peter Szijjártó. According to him, "the Russian Federation was a reliable partner."
Read also: The EU will prepare new sanctions against Russia's shadow fleet by the end of the year — Bloomberg
EU sanctions against Russian oil
The EU imposed sanctions on Russian oil after Moscow's invasion of Ukraine in 2022, although Slovakia and neighboring Czechia and Hungary won exemptions until they switch to other oil sources. Russian oil supplied by the Druzhba pipeline is cheaper than alternative flows, making this transition difficult.
In 2022, Bulgaria, Hungary, the Czech Republic and Slovakia received temporary exemptions from the ban on the import of oil and oil products from Russia introduced by the European Union.
In particular, EU member states that are particularly dependent on Russian pipeline oil can take advantage of temporary exemptions and continue to receive crude oil through pipelines.
