Tuesday, 02 January 2024 12:17 GMT

Residents in German City Warn of Economic Impact from Oil Supply Disruptions


(MENAFN) Residents in the eastern German city of Schwedt have expressed concern about potential disruptions to oil supplies that support a major local refinery, according to reports.

Speaking to a video agency, some residents warned that any interruption to deliveries could have severe consequences for the region’s economy and daily life. One resident said: “If the lights go out at PCK, the city dies,” while another added: “We do not want to go back to the 19th century.” Some also raised concerns that fuel shortages and price increases could lead to social tensions.

The comments come after reports that Russia announced it can no longer transport oil from Kazakhstan to Germany through the Druzhba pipeline, a Soviet-era infrastructure route. The refinery in Schwedt reportedly supplies the majority of fuel to Berlin and the surrounding Brandenburg region.

The facility previously relied on Russian pipeline oil but shifted to Kazakh supplies in 2023 following EU restrictions on Russian energy imports. According to reports, Kazakh oil deliveries via the pipeline route were recently halted, with Russian officials citing technical constraints.

In response, Kazakh authorities said they are exploring alternative export routes, including shipments through Russian ports on the Baltic and Black Sea. However, industry representatives have noted that reliance on sea transport could reduce refinery operating capacity and potentially require adjustments to production levels and staffing.

Officials in the energy sector have linked supply route disruptions to ongoing security concerns in the region, including damage to infrastructure linked to the wider conflict. The situation has also raised broader questions about the stability of European energy supply chains and the capacity of alternative transport routes to fully replace pipeline flows.

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