Italy nationalizes the russian oil refinery in Sicily

The Italian government plans to nationalize the ISAB refinery in Sicily, owned by the russian Lukoil.

ISAB accounts for about 20% of all processing capacity in Italy. After the entry into force of the EU oil embargo, the refinery will no longer be able to receive oil from russia. Thus, more than 10,000 workers will be at risk of dismissal. However, after nationalization, the plant will be able to purchase raw oil from other countries. The plant is to be taken over by the Italian Ministry of Finance. The decision may be taken at a government meeting on December 1, La Repubblica reports.

Back in September, the Italian authorities ruled out the nationalization of ISAB. At that time, it was believed that the best solution would be to sell the refinery to a foreign investor.

In November, Lukoil refused to sell the refinery to the American investment company Crossbridge Energy Partners. Allegedly, the russians doubted the potential buyer’s ability to provide the necessary amount for the deal, Financial Times sources said.

USM previously wrote that russia used its capacities in Sicily to circumvent sanctions.