Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Russia's Lukoil Refinery Won't Be Nationalized, Says Italy's Industry Min.

Sun 04 Dec 2022 | 08:15 AM
Taarek Refaat

The Italian Minister of Industry, Adolfo Urso spoke about the government's decision to put  the largest oil refinery in the country, owned by the Russian company Lukoil refinery under trusteeship, according to Financial Post.

Bloomberg said that the Italian government paved the way for placing the strategic refinery under temporary administration on Thursday, in a move that paved the way for a temporary acquisition by the state of the Esap refinery operated by Lukoil in Priolo, Sicily.

ISAP has been struggling to secure funding ahead of the European Union's embargo on Russian oil, which is set to begin on December 5.

In response to a question by the newspaper "Corriere della Sera" about whether the refinery will be nationalized, Orso said, "Of course not."

The Minister of Industry stated that the government is taking over the temporary supervision of the refinery under the option of handing over management to public companies operating in the same sector "to ensure the continuity of production and thus energy supplies in the country."

Orso added that ownership of the refinery could continue in talks to transfer it to others.

The urgent law passed by Prime Minister Gjorga Meloni's government on Thursday gives the government the green light to put power plants, pipelines and other power plants under temporary administration for up to two years.

It is worth noting that ISAP, operated by Lukoil, is one of the largest oil refineries in Europe, with a total capacity of more than 300,000 barrels per day.