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Polish Briefing 30 December, 2022 7:30 am   

Polish Briefing: Poland is waiting for EU sanctions before abandoning oil from Russia | Poland will import coal next year

Anna-Moskwa-na-konferencji-prasowej.-Fot.-Jedrzej-Stachura

What goes on in Poland on the 30th of December.

Poland is waiting for EU sanctions before abandoning oil from Russia

There is still no decision on EU sanctions on oil supplies via the northern branch of the Druzhba pipeline. Poland is still fighting for them, but if they do not enter into force, PKN Orlen will continue to import oil from Russia.

– We have completed imports by sea, work is underway on introducing a comprehensive package to abandon Russian oil. If there are to be exceptions, there must be some form of compensation. The contract with Rosneft will not be extended until 2023, the second contract with Tatneft will be valid until 2024, said Minister of Climate and Environment Anna Moskwa during a press conference on December 29.

BiznesAlert.pl was the first to report that Poland and Germany are seeking EU sanctions on the northern branch of the Druzhba oil pipeline stretching from Russia, through Belarus to these countries. Meanwhile, a year has passed and there is no resolution on this matter. BiznesAlert.pl sources in Warsaw confirm that Poles still count on the introduction of such sanctions.

When asked about the continuity of contracts with the Russians, PKN Orlen replies that the first expires at the end of January and the second at the end of 2024. – PKN Orlen performs the current long-term contracts for the supply of Russian oil. As we have repeatedly informed, PKN Orlen will not extend the long-term contract, which expires in January 2023, the company explains in a commentary for BiznesAlert.pl. – The only binding contract for the supply of Russian oil in 2023 (with Tatneft – ed.) will cease to be implemented when the sanctions are introduced, for which we are prepared – PKN Orlen adds.

Poland will import coal next year

Minister of Climate and Environment Anna Moskwa said at a press conference that imports of coal to Poland next year will have to be maintained, because domestic mining is not able to meet all demand.

– In addition to State Treasury entities, coal imports are carried out by private entities for the needs of industry, heating or the municipal and household sector. The total volume of imports this year is to be 4.5 million tons of coal for households, which is sifted from the coal that comes to us. The level of screening ranges from 20 to 40 percent per ton of coal, said the Minister of Climate and Environment.

Imports will be necessary next year, because in order to meet Polish needs, domestic production would have to reach 70 million tons. Today, approximately 40 million tons of coal are mined annually, so we will continue to import coal to Poland – said Anna Moskwa.

– The easiest way to go about this is to continue with the contracts we already have. Colombian coal has a high degree of screening. Out of the Polish coal, we get 10-15 percent to households, for Colombian coal that figure stands at 30 percent. Therefore, Colombia will be a priority import destination, she stressed.