Lukoil commits to 'uninterrupted operation' of ISAB refinery after sanctions
Quantum Commodity Intelligence – Lukoil said Friday it is ready to ensure the uninterrupted operation of the ISAB refinery in Sicily after EU sanctions come into force next week, having stored up feedstocks and secured an unspecified supply of non-Russian origin oil.
The statement comes days after Italian government officials signed off on plans to place the 355,000 bpd refinery into trusteeship to ensure its continued operation after sanctions.
"In view of upcoming restrictions on supply of oil from Russia to the countries of the European Union… Litasco (a Lukoil Group company) informs that it is ready to ensure uninterrupted operation of the refinery, given the feedstock stored up for the coming months and future deliveries of non-Russian origin oil," Lukoil said Friday.
"LITASCO confirms its readiness to continue meaningful cooperation with Italian government in order to ensure normal operation of the facility."
Italian Prime Minister Giorgia Meloni said Thursday plans to place the refinery into trusteeship was aimed at guaranteeing the continuity of the refinery, according to local media, which provides around 20% of Italy's road fuels.
"For 14 years, the refinery has been consistently honouring its obligations towards over 10 thousand Italians who depend on its operation, as well as delivering on its commitments to Italian authorities pertaining to taxes, health, safety and environment protection," Lukoil said.
Although not strictly sanctioned itself, Lukoil has struggled to secure financing or credit for continuing operations, including non-Russia crude procurement.
The refinery has become entirely reliant on Russian crude since the Ukraine invasion, which it will lose access to after EU sanctions on 5 December.
Reports also surfaced this week that talks have resumed between a Vitol-backed US private equity group and Lukoil to buy the troubled refinery.
US private equity group Crossbridge Energy returned after a failed bid earlier this month with an offer that values the 355,000 bpd ISAB refinery at €1-1.5 billion, according to Financial Times on Thursday, citing people close to the deal.
