Russia Halts Kazakh Crude Flow to Germany via Druzhba Pipeline

Starting May 1, Russia is set to terminate the supply of Kazakh crude oil to Germany via the Druzhba pipeline, Deputy Prime Minister Alexander Novak announced. This development critically impacts the PCK Schwedt refinery near Berlin, which heavily relies on Kazakhstan for 17% of its fuel supply, heightening Germany's fuel availability concerns in an already tense geopolitical climate.

Novak provided no detailed reasoning, simply citing "technical possibilities" for the decision. In 2023, Kazakhstan exported 2.146 million metric tons of oil to Germany through the pipeline, an increase from 2024. The decision comes amid ongoing disruptions stemming from conflicts in Iran and after Germany seized control of Schwedt's major stakeholder, Rosneft, following Russia's military actions in Ukraine.

With alternative routes being considered, the German government is in discussions with Poland about increasing oil deliveries through the Gdansk port. Meanwhile, Rosneft Germany acknowledges the step's impact but is committed to securing Germany's fuel supply. The Federal Network Agency is also monitoring potential regional price effects, collaborating closely with Rosneft.