Italy is working on ways to keep a Lukoil-owned refinery in business despite new sanctions against Russia kicking in next month, as Rome tries to buy time to agree the sale of the plant, three sources close to the matter told Reuters.
Lukoil's ISAB refinery in Sicily stands to be hit by an embargo on seaborne Russian oil that comes into force on Dec. 5, putting at risk jobs in Italy's poorer south and the country's refining capacity.
Although Lukoil is not affected by the sanctions, the ISAB plant has been forced to rely solely on Russian oil after creditor banks halted financing and stopped providing guarantees the refinery needs to buy oil from alternative suppliers.
Adolfo Urso, industry minister in Italy's new government, on Thursday said a solution would be found in coming weeks.
The sources said the government was trying to find ways to ensure the plant can receive financing from lenders and remain operational.
The issue was discussed in a meeting at Italy's industry ministry on Oct. 17 with representatives from Italy's top two banks, Intesa Sanpaolo and UniCredit, and from state-owned export credit agency SACE, minutes of the meeting seen by Reuters showed.
Lukoil was not immediately available for comment.
We remind, Lukoil has named a new top manager at its refinery in Sicily amid efforts by the Italian government to find a buyer for the plant and shield it from sanctions on Russian oil. The Russian group has picked Eugene Maniakhine as director general at its ISAB plant in the Sicilian town of Priolo, Lukoil's Italian unit said in a statement.
mrchub.com