The Italian government plans to place a Lukoil refinery in Sicily under trusteeship on Thursday, according to Sicily President Nello Musumeci.
A spokesperson for Sicily governor Renato Schifani told Reuters that a cabinet meeting scheduled for later Thursday will authorize the transfer for the Lukoil asset.
The existence of Lukoil’s ISAB plant is jeopardized if a European ban on Russian seaborne oil takes effect on December 5.
The new development comes after reports surfaced that that government planned to nationalize the Lukoil asset, according to individuals involved in the case.
ISAB employs approximately 1,000 people and refines one-fifth of Italy’s oil. Should the state take over management, the facility will be able to maintain production by purchasing oil from other suppliers, with state-owned credit agency SACE offering assurances to creditor banks.
Information for this briefing was found via Reuters and sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
