Germany Faces Oil Supply Challenge as Russia Halts Kazakh Crude Via Druzhba Pipeline

On Wednesday, Deputy Prime Minister Alexander Novak announced that Russia would cease the supply of Kazakh crude oil to Germany via the Druzhba pipeline starting May 1. This decision presents a significant challenge for the PCK Schwedt refinery near Berlin, which heavily depends on Kazakhstan for a portion of its oil supplies.

The halt exacerbates existing fuel supply issues in Germany as geopolitical conflicts, such as the Iran war, disturb Gulf oil flow. Last year, Kazakhstan exported 2.146 million metric tons of crude oil to Germany through this pipeline, marking a 44% increase from 2024 figures.

The German Economy Ministry is considering alternatives, including supplies from Gdansk and Rostock, to mitigate potential shortages, while Rosneft Germany adapts to the changing landscape. Despite the complication, the Ministry assured that Germany's petroleum product supply security remains intact.

(With inputs from agencies.)