Italy allowed the sale of LUKOIL’s refinery in Sicily to a Cypriot company
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The Italian Council of Ministers has approved a deal for the sale of the ISAB refinery in Italy, which LUKOIL concluded with the GOI Energy group, the newspaper reports. il Fatto Quotidiano. According to her, the country’s authorities have introduced a number of conditions – in particular, the ability to trace the origin of oil entering the refinery. In addition, the level of employment of the plant’s personnel and the workload of its production capacities will be monitored.
ISAB is the largest oil refinery in Italy, it used to buy 30-40% of its raw materials in Russia. LUKOIL acquired the plant in 2008, the company owns 49% of the enterprise. Before the COVID-19 pandemic, ISAB produced 10.6 million tons per year, which is 13% of the total volume of refined oil in Italy.
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 closing of the transaction was planned on March 31, but Italian officials suspended this process. Financial Times wrotethat Italian officials decided to renegotiate the agreement after the US government privately expressed concern that a Russian company was selling its asset to a little-known fund in Cyprus.
Read more about the deal in the publication “Kommersant” “LUKOIL found help in Cyprus”.
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