Slovnaft Allocates 200 Million Euros to Technology in Response to EU Sanctions on Russian Oil

Bratislava ** Slovnaft refinery is facing total costs of approximately 200 million euros to adapt its oil processing technology in response to EU sanctions against Russia. The completion of these investment projects is anticipated by 2027, aiming to enhance the company’s ability to process a wider variety of alternative oils with different qualities. This information was shared by refinery technologist Jozef Žužov during a podcast episode of Slovnaft Talks, as reported by TASR.

Žužov noted that the refinery’s original technology was primarily designed for processing heavier Russian oil and has not seen significant modifications since its establishment. Therefore, the new investments will target the processing of lighter oils, which are more abundant in the commodity market, according to his insights.

The transition to new technologies was initially supported by a 2015 investment related to oil imports through the Adria pipeline. “A significant boost came from the investment we made in 2020 for a brand new oil tank, which is now the largest we operate,” Žužov explained, emphasizing that this new tank greatly facilitated the intake of alternative oils. This enhancement allows for more flexible blending of suitable oil mixtures, a process that was previously constrained by the number of available oil tanks.

Žužov also mentioned that the oil transportation system from Croatia via the Adria pipeline is more complex than the previous setup, with delivery times now ranging from one to two weeks. “This system not only transports oil to Slovakia but also extends southward to Hungary, Croatia, and Serbia, adding to its complexity, as the transporter—especially the Croatian operator—must accommodate various logistical requirements,” he clarified.

On December 5th, the exemption allowing Slovakia, including the Slovnaft refinery, to export products derived from Russian oil expired. In response, the Ministry of Economy and Slovak diplomats are actively working to seek an extension of this exemption within the European Union. (December 10th)