Since the beginning of the invasion, the Czech Republic has spent more than EUR7.9 billion ($8.2billion) on Russian gas and oil.
The Czech Republic is Ukraine’s closest ally. It provides significant military equipment, humanitarian assistance, and ammunition raising funds.
Western sanctions against Russian oil and fuel were implemented in response to Moscow‘s invasion of Ukraine. They were designed to cut off a vital revenue stream for the Kremlin.
According to research conducted by the Center for the Study of Democracy and the Centre for Research on Energy and Clean Air, this amount is more than five-times the EUR1.29bn ($1.4bn) that it has provided to Ukraine in aid.
The report shows that Czech oil refineries and Polish firm Orlen Unipetrol have benefited from discounted Russian fuels, amounting to approximately EUR1.2 billion ($1.3billion).
In 2023, Russian oil was on average 21 percent cheaper than Azerbaijani alternative oil.
The situation is a result of an exemption granted by EU to the Czech Republic along with Hungary and Slovakia from the Russian oil embargo. This exemption was meant to give these landlocked nations more time to secure alternative fuel routes.
The research indicates that the Czech Republic will still be dependent on Russian oil in 2023 at around 60%, despite the government’s intention to reduce purchases from Moscow.
Martin Vladimirov, Director of Energy and Climate for the Center for the Study of Democracy, said that “Czechia can secure normal supplies of non Russian crude oil” by using alternative pipelines and increasing imports of refined products.
The Czech Ministry of Industry and Trade has stated its commitment to “ending our dependence on Russian fossil fuels, as quickly as is technically possible.” It aims to divest from Russian oil completely by next year.
The ministry also stated that Orlen Unipetrol is the private company in charge of Russian oil imports, and that “the government has no direct control” over it.
Orlen Unipetrol, a Polish company, said that it “complies” with all domestic and international laws. It is also “preparing to make a complete transition away from Russian grades of oil.”
Luke Wickenden, a researcher with the Centre for Research on Energy and Clean Air said: “Orlen continues using it to funnel around EUR50 million ($55 millions) each month to Kremlin as oil tax revenue.
Politico reported last week that Western allies will purchase approximately $2 billion of fuel refined from Russian crude oil in the first half 2024.
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