Zaniewicz: A unilateral Polish embargo on LPG from Russia would not stop its flow

The viral response of the Ministry of Climate and Environment on the further import of LPG from Russia to Poland diverts attention from the facts. It is highly likely that in the event of a unilateral embargo by Poland, Russian LPG would enter our country from other directions – warns Maciej Zaniewicz from the Energy Forum.

The Ministry of Climate and Environment responded to the interpellation of MP Jacek Tomczak from the Polish People’s Party on the import of LPG from Russia to Poland, which has not yet been subject to sanctions. Half of the compressed gas powering Polish cars and not only comes from this direction, despite the fact that Poles have already abandoned natural gas and oil from the Russians. Poland imported 144,000 tons of Russian LPG in 2022. In the period from January to April 2023, it was 345 thousand tons. Meanwhile, Prime Minister Mateusz Morawiecki had announced the introduction of an embargo on LPG from Russia.

“In the following months, the Prime Minister did not comment on this issue. The ministry, headed by you, did not inform about any actions aimed at increasing domestic production of LPG or allowing the import of this fuel in greater quantities from alternative supply directions to Russia, ” Tomczak said.

Deputy Minister of Climate and Environment Piotr Dziadzio warned in response to the interpellation that the embargo could cause a price shock if it was not preceded by diversification, which takes time. He also warned against supplies of LPG from Russia indirectly and reminded that Russian raw material also supplies Ukraine through Poland.

“The most effective would be an embargo at the EU level,” Maciej Zaniewicz from the Energy Forum told BiznesAlert.pl. “It is highly likely that in the event of a unilateral embargo by Poland, Russian LPG would enter our country from other directions. Therefore, it is crucial from the Polish perspective to continue seeking the inclusion of LPG in the next package of sanctions. Similarly, we should strive to eliminate Russian LNG from the EU. Poland does not import it, but, for example, Belgium, France, the Netherlands or Spain spend hundreds of millions of euros a month on it,” warns our interlocutor.

However, even EU sanctions should be preceded by a transition period, according to the Climate Ministry. “The introduction of European sanctions on the import of LPG from Russia should be preceded by an appropriate transition period, allowing for the reconstruction of logistics throughout the EU-27. From the point of view of optimal protection of the Polish market with its specifics of the use of LPG, the transition period should be about a year,” Piotr Dziadzio said at the Sejm. According to various estimates, LPG shortages in the event of an embargo in Poland could range from 600 to 900 thousand tons.

Wojciech Jakóbik