December 20, 2019 / 1:16 PM / a month ago

Poland's Lotos expects to calculate costs of Russian tainted oil crisis soon

The logo of Lotos, Poland's oil refiner, is pictured at a petrol station in Warsaw, Poland April 25, 2019. REUTERS/Kacper Pempel

GDANSK, Poland (Reuters) - Polish state-run oil refiner Lotos will soon complete estimates of costs resulting from this year’s Russian tainted oil crisis and it will then make claims, an executive said.

Poland stopped Russian oil imports via the Druzhba pipeline in April for 46 days, after the contamination was discovered. Buyers of Russian oil as far west as Germany were affected.

Lotos and rival PKN Orlen had to buy seaborne oil cargoes and dipped into reserves to keep refineries running. Flows were restored in July.

“We will soon know the estimates of how much it would eventually cost us,” Lotos Deputy Head Jaroslaw Kawula told Reuters, adding that once the information had been gathered “we will be able to address the suppliers with claims.”

He did not give a precise timeline for completing the calculation or submitting a claim.

Kawula said costs would include those associated with buying more expensive seaborne oil cargoes on the spot market and the expense of neutralizing the contamination.

PKN Orlen said this month it had asked Russian suppliers for compensation.

Reporting by Agnieszka Barteczko; Editing by Edmund Blair

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