FT: Italy to reconsider sale of Lukoil refinery in Sicily amid US concerns

Italian officials plan to revise the agreement on the sale of the ISAB oil refinery in Italy, which LUKOIL concluded with the GOI Energy group. This decision was made by the Italian authorities after the US government privately expressed concern that a Russian company was selling its asset to a little-known fund in Cyprus. Financial Times with reference to sources.

In January LUKOIL concluded a deal with GOI Energy to sell the ISAB refinery for €1.5 billion. The deal also involves Singaporean commodity trader Trafigura. It will provide the plant with working capital and crude oil, as well as marketing the refined fuel it produces.

The deal was expected to close on March 31, but Italian officials put the process on hold. According to sources familiar with the negotiations, Washington representatives asked Rome to confirm that there is no Russian participation in GOI Energy.

Trafigura’s co-head of crude oil trading, Ben Lacock, confirmed to the FT that company representatives met with Italian officials this week to “answer their questions” and said the meeting was “positive” and the process is moving forward.

An unnamed Italian official told the publication that Rome is optimistic and expects the deal to be approved next week. However, some authorities are still concerned that a little-known company from Cyprus is going to acquire the strategic facility.

GOI Energy, in response to a request from the FT, categorically denied any Russian involvement in its financing. The company said that only “Greeks, Israelis and Cypriots” are among its investors. In addition, the company’s chairman of the board, Christodoulos Damianou, is the consul of Ukraine in Cyprus.

Read more about the deal – in the material “LUKOIL found help in Cyprus”.

Erdni Kagaltynov