Poland’s Unimot bets on EU embargo to boost diesel sales in Germany

WARSAW (Reuters) – Polish energy group Unimot is expanding international trading as it seeks to import diesel to Germany amid potential European Union sanctions on Russian oil and refined products, chief executive said on Tuesday.

The European Union is discussing an embargo on Russian oil and refined products in response to the conflict in Ukraine. Most EU states would have to fully implement it within months of its adoption.

Unimot, a trader of motor fuels and electricity, last month rented a terminal in Gulfhavn in Denmark to import non-Russian diesel into Europe. The terminal’s capacity can cover Poland’s import needs for diesel and offers additional trading opportunities, the company said. “We’ve invested in the Danish terminal and we are now waiting for the EU sanctions, it will be a key driver of our earnings in 2023.” Chief Executive Adam Sikorski told a chat with investors on Tuesday.

Unimot said it couldn’t estimate how much diesel it would place in Germany given an uncertain future of Rosneft-owned PCK Schwedt refinery in eastern Germany.

Berlin is seeking alternative options for ownership and logistics for the refinery that is set to cut runs based on Russian crude. “The European Union is importing 3 million tons of Russian diesel every month and Germany is very dependent on it,” Sikorski said. “The Danish terminal will help us supply the fuel to Germany, that’s is also why we’re opening a Swiss office in Geneva.”

(Reporting by Marek Strzelecki, Editing by Louise Heavens)