Czechia to fully abandon Russian oil by 2024

25 May, 06:08 PM
Czech Prime Minister Petr Fiala (Photo:David W Cerny / Reuters)

Czech Prime Minister Petr Fiala (Photo:David W Cerny / Reuters)

Czechia is set to completely phase out Russian oil by 2024 following the modernization of the Transalpine Pipeline, Czech Prime Minister Petr Fiala stated, as quoted by Interfax-Ukraine on May 25.

The announcement came after the signing ceremony between the TAL Group, which manages the Transalpine Pipeline, and Czech oil transport company Mero ČR.

Under the TAL-PLUS project agreement, the Transalpine Pipeline (TAL) will undergo modernization to increase its capacity by 4 million tons of crude oil per year. Once the project is completed, TAL will be able to supply 8 million tons of oil annually to the Czech Republic, effectively fulfilling the country’s demand for crude oil.

Video of day

Prime Minister Fiala emphasized the strategic significance of expanding the TAL pipeline’s capacity.

“Since the beginning of Russian aggression in Ukraine, we have successfully re-placed gas supplies from Russia and significantly stabilized prices for electricity and fuel,” he said.

“Through the fundamental step of modernizing the Transalpine Pipeline, we will eliminate our dependence on Russian oil.

”Fiala highlighted that the TAL-PLUS pipeline modernization project is scheduled for completion by 2024, ahead of the ban on Russian oil imports. This ban was agreed upon due to the necessity of increasing the TAL pipeline’s capacity, Fail stated.

“Furthermore, we will fulfill our commitment made during negotiations to exclude the supply of Russian oil by the end of 2024,” he added.

Investments in infrastructure modernization, including technological changes in Mero ČR infrastructure, are estimated to range from 1.3 to 1.6 billion Czech crowns, equivalent to 50-70 million euros ($53-75 million).

Czechia received 7.1 million tons of oil at its refineries in 2021, with over 48% of the supply coming from Russia. Russian deliveries accounted for 56% of the total volume of 7.4 million tons of oil in 2022.

The TAL Group manages the Transalpine Pipeline, which transports oil from the port of Trieste, Italy, to Austria, Germany, and Czechia. This pipeline plays a vital role in supplying oil to Central Europe, accounting for 90% of Austrian refinery processing, 50% of Czech refinery processing, and all processed oil at refineries in southern Germany.

The Transalpine Pipeline has a capacity of approximately 43 million tons of crude oil per year. In 2021, it transported 37.2 million tons of crude oil, with a slightly lower figure of 37.6 million tons in 2020.

The major shareholders of the TAL Group include OMV with a stake of 32.26%, Shell with 19%, Rosneft with 11%, and Eni (Agip) with 10%.

We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!

Follow us on Twitter, Facebook and Google News

Ukraine Today
Fresh daily newsletter covering the top headlines and developments in Ukraine
Daily at 9am EST
Show more news