“This is the theater of the absurd.” Novak on Poland’s plans to buy Russian oil next year Novak described Poland’s plans to buy Russian oil in 2023 as “nonsense theater”

Novak did not confirm or deny information about possible oil supplies to Poland, but said he learned about it from the media.

“We think it’s bullshit theater – that’s what they did,” Novak said.

Speaking about the level of deliveries, Deputy Prime Minister noted that Moscow does not expect a decrease in exports in December despite the impending oil price ceiling, as it has narrowed deliveries in October-November.

“As for the December placements and contracts, they were still contracted late October – early November. Therefore, we do not expect any changes for December. Contracts are being made,” he said.

According to him, Russia is now contracting for January and relying on domestic raw material demand despite market uncertainty.

Deliveries and penalties

At the request of Warsaw for oil supply from Russia knowledgeable On November 16, Kommersant cites a Russian source. Later this information was confirmed in Poland. The newspaper wrote that Polish oil refinery Orlen applied to Transneft for the passage of 3 million tons of Russian oil through the northern branch of Druzhba in 2023.

“Orlen, Poland’s largest oil refinery, which completed its merger with gas company PGNiG in November, may continue to purchase Russian oil through the northern branch of the Druzhba pipeline in 2023,” the newspaper said.

Orlen has stopped spot deliveries since March, but continues to purchase raw materials under long-term contracts with Tatneft (2.4 million tons/year until 2024) and Rosneft (3.6 million tons/year until January-February 2023). continues. Under the Rosneft contract, approximately 0.6 million tons can be delivered to Poland in 2 months, respectively, while together with Tatneft, approximately 3 million tons are obtained annually. Orlen has already reduced its reliance on Russian oil to 30% and instead imports from Saudi Arabia, Norway and other countries.

Transneft Vice President Sergey Andronov later informed Kommersant about the application from Poland, but did not specify the volume of raw materials and the receiving company.

“I would also like to draw attention to the existence of applications for transit pass through the Republic of Belarus for 2023 by Polish consumers,” he said.

Orlen confirmed the existence of an application to Transneft, but clarified that it was “a technical notice of claim in the case of execution of contracts that are still binding on PKN Orlen”. They stressed that Orlen will comply with the terms of the sanctions, both at the national and international level.

In the summer, the European Union approved an oil embargo against Russia, meaning a ban on oil supplies, but an exception was made for the Druzhba pipeline. The restrictions come into effect on December 5, for petroleum products – on February 5.

The oil ‘shutdown’ debate

Polish Prime Minister Mateusz Morawiecki urged the EU on 28 November to abandon Russian oil as soon as possible, but said it was still a matter of debate.

“This is a matter of debate within the European Union. As one of the main regulators, if not the main organizer of many sanctions packages, we are in favor of an immediate “closure” of Russian oil,” he said.

However, just recently, Bloomberg, citing diplomatic sources, reported that EU countries could not agree on the ceiling price for oil from Russia, with Warsaw finding the recommended level too high – the media reported about $62 per barrel, while Poland insisted on $30. he did. . Warsaw also called for sanctions for the northern branch of Druzhba in order to obtain a legal justification for terminating existing contracts with Russian suppliers and not paying penalties.

On December 2, Polish Ambassador to the EU Andrzej Sados said Warsaw had approved an agreement limiting the price of Russian oil to $60 per barrel. Reuters.