German Refinery Reliant on Russia Now Using USA Oil

German Refinery Reliant on Russia Now Using USA Oil
Germany's Schwedt oil refinery has started processing US crude blended with Russian Urals.

Germany’s Schwedt oil refinery has started processing US crude blended with Russian Urals, according to a person familiar with the matter.

US crude brought in from Rostock on Germany’s Baltic coast currently accounts for about 20% of what the refinery is processing, the person said. The port recently took delivery of its first cargo of US oil in at least half a decade. Operator PCK couldn’t immediately be reached by phone for comment.

The Schwedt refinery, partly owned by Moscow-based Rosneft PJSC, is located near the Polish border and has always relied on the Druzhba pipeline from Russia for crude supply. German Economy Minister Robert Habeck said previously it is the hardest refinery in Germany to wean off Russian oil supply. 

Because the facility was designed to process Russian oil shipped via Druzhba, “replacing those volumes is basically impossible both physically and technologically,” Rosneft’s press office said by email. 

Supplies through the pipeline from Rostock can meet no more than half of the refinery’s crude demand, according to Rosneft. Lower runs could lead to Schwedt incurring losses of some 300 million euros ($306 million) per year, the Russian crude producer said.


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