Czech Republic independent of Russian oil

osw.waw.pl 2 months ago

Analysis

2025-04-18

Czech Republic independent of Russian oil

Krzysztof Dębiek

On April 17, Prime Minister Petr Fiala reported that the Czech Republic had definitely broken the dependency on Russian oil supplies. On that day, for the first time in history, the country was only supplied with natural materials originating in another countries than Russia and only — connecting — TAL oil pipelines (from the Italian port Triest to confederate Germany) and IKL (from Bavarian Ingolstadt to the Czech Republic). This is the consequence of the implementation of the TAL-PLUS task approved in the autumn of 2022, which importantly increased the anticipation of transporting the natural material on this way (see IP/10/02). TAL expansion: Czech Republic on the road to independency from Russian oil supply).

The Czech Republic, led by the centre-rights, consistently reduces energy dependence on Russia and belongs to regional leaders in this respect. Both the reluctance to indirectly support Moscow's war effort, the negative experience of supply interruptions from the east direction, and the uncertainty about the stableness of oil transport by the Druzba train in conditions of the Russian-Ukrainian War have influenced steps to improve the safety of oil imports.

Comment

The completion of the TAL-PLUS task importantly improves the energy safety of the Czech Republic. From this perspective, it is the second turning point in the past of oil supplies to this country. The first was the launch of the IKL oil pipeline in January 1996. The decision to build it was made 2 years earlier, and it was influenced by both the desire to make an alternate supply channel, frequent interruptions in the supply of natural material and the mediocre method condition of the best man. Deliveries through it have been carried out in the territory of the present Czech Republic since the 1960s. In the last fewer years, the proportion of volumes delivered to the country by the Druzba and TAL-IKL pipelines mostly ranged from 40:60 to 60:40 in favour of 1 or the another way (see Figure 1). Thanks to the modernization of the TAL pipeline, the amount of natural material will be doubled to 8 million tonnes per year. This will meet the country’s yearly oil request – in fresh years deliveries ranged from 6 million to 7.5 million tonnes (see Figure 2). In the meantime, the company Orlen, which owns both Czech refineries, managed to adapt the 1 in Litvínow (processing capacity: 5.4 million tonnes per year) to the processing of non-Russian oil. The second, in Kralupa nad Vltava (3.3 million t/r), had already processed the natural material supplied with TAL and IKL oil.
Increasing the capacity of the TAL pipeline is simply a large success of the Fiala office. It believes the slogan of the "protection of the future" to which the centre-right reaches in the ongoing run against the autumn elections to the Chamber of Members, and besides shares the precedence of safety issues in another fields. In 2024, after 2 decades, the goal of 2% of GDP allocated to defence was achieved, and it was previously enshrined in the Act, with Prague wanting to increase this spending to 3% in 2030. The Czechs belong to the avant-garde of support of the fighting Ukraine, coordinating purchases and supplies of artillery ammunition for Kiev. At the same time, these circumstances are likely to prove insufficient to stay in power after this year's elections, e.g. due to a fall in the standard of surviving in the country felt by a crucial part of the word of office ending (see IP/10/27). Half-Methic of the Government of Philadelphia: strengthening safety in the shadow of economical problems).
The independency from Russian oil supplies is part of Prague's consistent efforts to reduce energy dependence on Russia overall. Since the summertime of 2022, the Czech Republic has no longer been dependent on Russian gas supplies on the basis of a long-term agreement with Gazprom. In strengthening this position, the government-inspired actions of the main energy company ČEZ (70% of shares belong to the State Treasury) which reserved capacity at the FSRU terminal in the Dutch Eemshaven (for the period 2022–2027; covers 1 3rd of the demand) and in the emerging land terminal in Stade close Hamburg (since 2027, for 15 years with the option of extension; covers 25% of the demand). Although since the fall of 2023, due to a large amount of inexpensive Russian gas delivered to Slovakia, Hungary and Austria, it has again begun to appear in the Czech Republic in more quantities (imported by companies trading in natural materials), the halting of transit through Ukraine at the beginning of this year has again reduced Russian gas purchases to marginal levels. Russian TVEL no longer supplies fuel to Czech atomic power plants, but the stored stock is yet to be utilized for up to 3 years. In this year, the first deliveries of fuel from the American company Westinghouse (via a production plant in Sweden) are expected and then from French Framatome. It should be noted that the second produces atomic fuel under the licence of TVEL (production takes place in the German Lingen close the border with the Netherlands). However, the French company is working in parallel on developing its own fuel.