Poland's PKN receives some compensation for undelivered Russian oil

Poland’s biggest oil refiner, state-run PKN Orlen, has received some compensation in connection with the disrupted supply of Russian oil after contamination was discovered in April, a spokeswoman said.

“PKN received some compensation for undelivered oil from Russian companies with which it had signed contracts,” the spokeswoman said.

“This amount is significantly lower than the one which will be calculated by the end of this year based on loss estimates related to deliveries of contaminated oil.”

In April, buyers, including PKN Orlen, discovered that supplies of Russian crude had been contaminated with organic chloride, a chemical used in oil recovery that can damage refining equipment.

Polish pipeline operator PERN halted Russian oil imports via the Druzhba pipeline in response. Flows were partially restarted in June.

PKN and smaller rival Lotos used oil from sources other than Russia and used clean crude to dilute contaminated oil.

Reporting by Wojciech Zurawski; writing by Agnieszka Barteczko; editing by Jason Neely

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