Poland supports PKN Orlen in its purchase of a Lithuanian refiner Mazeikiu and will push other governments to help the Polish company secure oil supplies, Economy Minister Piotr Wozniak said.
Last week Mr Wipler, head of the energy supply diversification department at Economic Ministry, said PKN may fail to secure oil supplies for Mazeikiu and be forced to sell it at a loss.
Our view:
The political support of the government was widely expected, moreover, few months ago Polish government played a big role in convincing Lithuanian government to accept PKN Orlen as a buyer for Mazeikiu. However, the political support is also needed when PKN is struggling to secure crude oil supply for the Lithuanian refiner. However, we have no idea what could be the tools in the hands of Polish politicians to convince Russian counterparts. We see the news as neutral to the share price.