3 challenges Germany faces in the absence of Russian oil.

The Druzhba pipeline carries oil supplies from Russia to Hungary, transiting through Ukraine. Photo: TASS — From May 1st, Kazakhstan's oil exports to Germany will no longer pass through Russia's "Druzhba" pipeline system. Photo: TASS

According to RIA Novosti on May 15, a former senior official of the German State Planning Commission said that the German oil refinery PCK Raffinerie GmbH in Schwedt is facing serious supply security problems after abandoning oil from Russia.

"The PCK Raffinerie GmbH plant in Schwedt plays a very specific role. This facility supplies all kinds of fuel to the entire northeastern region of Germany, including the capital Berlin," a former German official told RIA Novosti.

He emphasized that the facility was originally built exclusively to refine oil from the Soviet Union. From the reunification of Germany until before the sanctions were imposed, the plant processed almost exclusively Russian oil.

The source also pointed out: "Currently, under pressure from sanctions, German businesses are trying to stay afloat by sourcing supplies from multiple partners. This entails significant risks to supply chain stability and the company's future prospects."

In April, Russian Deputy Prime Minister Alexander Novak announced that, starting May 1st, Kazakhstan's oil exports to Germany would no longer pass through the "Druzhba" pipeline system due to technical limitations.

However, German Economy Ministry spokesman Daniel Greve asserted that the suspension of Kazakhstani oil transit via the "Druzhba" route would not significantly reduce the operating capacity of the PCK refinery in Schwedt.

Earlier, Kazakhstan's Energy Minister, Erlan Akkenzhenov, stated that the German refinery in Schwedt depends on approximately 20-30% of its crude oil from Kazakhstan. In 2025, the country supplied 2.1 million tons via this route and expects to increase production to 3 million tons this year.

According to the former German official, the European Union's (EU) sanctions and US tariffs are creating enormous barriers for Germany's energy-intensive industrial complexes. The consequence is a wave of manufacturing relocation to other countries and a sharp increase in bankruptcy rates.

"It can be stated that international fluctuations are causing significant difficulties for businesses. Their core inputs are oil and gas. Their prices, especially electricity prices, have skyrocketed due to sanctions and past mistakes. This is undermining the competitiveness of the entire German economy," the source stated.

Ultimately, the inevitable consequence is a massive shift of manufacturing to countries with lower energy prices, such as the United States and China. This is accompanied by an increasing number of bankruptcies and job cuts.

Source: https://baonghean.vn/3-kho-khan-cua-duc-khi-vang-bong-dau-nga-10336866.html