Czechia spends five times more on Russian oil and gas than aid to Ukraine

Czechia has spent over €7 billion ($7.6 billion) on Russian oil and gas—more than five times the €1.29 billion ($1.4 billion) it has provided in aid to Ukraine, according to a report by the Center for the Study of Democracy and the Centre for Research on Energy and Clean Air.

After Russia invaded Ukraine, the EU decided to phase out Russian oil, but temporary exemptions were granted to Hungary, Slovakia, and Czechia, as these countries are landlocked. They were expected to eventually replace Russian suppliers with alternatives.

However, in 2023, Czechia’s dependence on Russian oil increased to 60%, and its oil imports have generated over €2.3 billion ($2.5 billion) in revenue for the Kremlin since the invasion began.

Despite having enough capacity in the market to completely replace Russian oil, Czechia continues to purchase and profit from it.

The sole crude oil refiner in Czechia, Orlen Unipetrol, a subsidiary of Poland’s PKN Orlen, took advantage of the EU’s exemption on Russian oil imports.

In 2023, it bought large quantities of Russian crude at an average of 21% cheaper than Azerbaijani oil, resulting in around €1.2 billion ($1.3 billion) in additional profit.

Analysts suggest that Czechia could fully replace Russian crude supplies by maximizing the use of the Transalpine pipeline, increasing oil product imports from Germany, and utilizing the country’s significant crude oil reserves.

Similarly, Czechia could completely stop buying Russian gas, as it has sufficient alternative non-Russian supply options from Norway and the global LNG market.

"To complete its strategic decoupling from Russian oil, the EU should close all sanctions gaps including the exemptions for the Druzhba pipeline and the refining loophole, which has allowed third countries to maximize Russian crude purchases and sell the surplus petroleum products back to the EU," the report states.