By Christoph Steitz FRANKFURT, April 22 (Reuters) - Germany has been informed that Russia will stop the supply of Kazakh crude oil via the Druzhba pipeline, the economy ministry said on Wednesday,
Russia to stop Kazakh oil flows to German PCK refinery via Druzhba
Impact and Implications of Russia Halting Kazakh Oil Supplies to Germany
By Christoph Steitz and Vladimir Soldatkin
Background and Announcement
FRANKFURT/MOSCOW, April 22 (Reuters) - Russia will stop the supply of Kazakh crude oil via the Druzhba pipeline to Germany from May 1, Deputy Prime Minister Alexander Novak said on Wednesday, forcing a major refinery near Berlin to make up the shortfall from elsewhere.
The move deals a blow to the PCK Schwedt refinery, which supplies most of the German capital's fuel and relies on Kazakhstan for 17% of its supplies. It also adds to Germany's fuel supply concerns as the Iran war disrupts flows from the Gulf.
Novak said the move was due to "technical possibilities", offering no further explanation.
Recent Export Figures
Kazakhstan's oil exports to Germany via Russia's Druzhba pipeline totalled 2.146 million metric tons, or around 43,000 barrels per day, last year, an increase of 44% from 2024, and 730,000 tons in the first quarter of 2026.
Three industry sources had told Reuters on Tuesday that Russia was set to stop oil exports from Kazakhstan via the Druzhba pipeline starting May 1.
Pipeline Operations and Regional Impact
Pipeline Logistics
Supplies to Germany have been carried over a northern section of the pipeline, separate from the southern one that supplies Hungary and Slovakia, which is about to resume operation after repairs following a Russian drone strike in January.
German Control Over Schwedt Refinery
Germany controls Schwedt via a trusteeship after it effectively seized the stake of its majority owner, Russia's Rosneft, following Russia's invasion of Ukraine in 2022, which ended a long-standing energy relationship between Moscow and Berlin.
Official Statements and Reactions
Statements from Russian Officials
"Starting from May 1, volumes of Kazakh oil previously supplied via the Druzhba pipeline to Germany will be redirected to other available logistics routes," Novak told reporters on Wednesday.
Asked whether this would constitute a loss of supply for Germany, Novak said: "The Germans have given up on Russian oil, so they are doing fine."
German Government and Industry Response
Rosneft Germany was assessing the step and would adapt to any new situation, Germany's economy ministry said, adding the Russian group was aware of its responsibility to the region.
"At the same time, existing options will be utilised to ensure security of supply in Germany," the ministry said, adding that the move did not put the security of supply of petroleum products in jeopardy.
Alternative Supply Routes
German Economy Minister Katherina Reiche outlined potential alternatives, including deliveries through Gdansk or Rostock, which could supply the refinery via pipelines, adding she could not comment on possible shortages in Berlin.
Regulatory Oversight
The Federal Network Agency, the country's energy regulator, which acts as trustee of Rosneft Germany's activities, said there might still be regional pricing effects, adding it was closely coordinating with the company.
Rosneft Germany was not immediately available for comment.
Ownership Structure of Schwedt Refinery
While stripped of control via the German trusteeship, Rosneft remains the main legal owner of the Schwedt refinery, holding a 54.17% stake, with Shell and Eni holding 37.5% and 8.33%, respectively.
(Reporting by Christoph Steitz, Vladimir Soldatkin; Additional reporting by Holger Hansen and Maria Martinez; editing by Matthias Williams, Thomas Seythal, Tomasz Janowski, Elaine Hardcastle, Rod Nickel)
