Italy is considering the temporary nationalization of the ISAB refineryowned by Lukoil, as one of its options in case sanctions are imposed on the russian oiltwo government sources told Reuters.
The Minister of Industry, Giancarlo Giorgettiplans to raise the nationalization of ISAB as an option when the Italian cabinet meets on Thursday, one of the sources said.
Given the Europe depends largely on the Russian oil and gas importsthe continent remains divided on the question of prohibition.
Ukraine, Poland Y Lithuania are some of the states that are in favor of a ban on imports of Russian oil and gas, while Germany Y Hungary oppose an immediate embargo.
ISAB, Italy’s largest oil refiner by capacity, used to buy 30% to 40% of its raw material from Russiaand the rest came from international markets.
But one of the effects of Russian invasion of Ukraine is that ISAB has been forced to source almost all of the crude from its Russian owner Lukoil because the international banks they no longer give you credits.
Lukoil is not currently subject to sanctions.
“Since we don’t have international credit, we can’t buy crude from other places,” ISAB deputy director general Claudio Geraci told Reuters.
The refinery, which employs around 1,000 workers, is owned by Switzerland-based trading and supply group Litasco SA, which sells 89% of its output.
A representative for Lukoil-controlled Litasco was not available for comment.
ISAB, which represents around 22% of the total refining capacity in Italy, is located on the island of Sicily and its closure would affect employment and growth in the area.
Fiorenzo Amatoa local CGIL union official, said there was currently no disruption, but acknowledged the plant could run into problems if imports of Russian oil are stopped.
Before the Covid-19 pandemic affect Italy’s energy demand, ISAB’s production was 10.6 million tons per year, 13% of the country’s total.