Home News New sanctions on Russian oil imports could paralyze Lukoil’s Italian ISAB refinery

New sanctions on Russian oil imports could paralyze Lukoil’s Italian ISAB refinery

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At Monday’s meeting, EU leaders agreed to a 90 percent reduction in oil imports from Russia by the end of the year, as well as other sanctions, including the removal of Russia’s largest bank, Sberbank, from SWIFT. A spokesman for the European Commission said that EU sanctions on imports of crude oil from Russia at sea would be imposed with a transition period of six months for crude oil and eight months for refined products.

“This embargo could significantly affect ISAB,” said the president of the region of Sicily, asking the government to find solutions to this problem, informs Agerpres.

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ISAB, Italy’s largest oil refinery in terms of processing capacity, purchased 30-40% of Russia’s raw material, with the rest coming from international markets.

“There is a deafening silence about the labor catastrophe that could be faced by part of the Priolo petrochemical plant, the embargo and its consequences paralyzing the ISAB refinery,” Musumeci said in a Facebook post.

ISAB is responsible for about 20% of Italy’s refining capacity, and its plant supplies about 20% of the electricity Sicily needs.

The ISAB refinery, which employs about 1,000 people, is owned by the Swiss trading company Litasco SA, which sells 89% of the refinery’s production. Litasco, in turn, is controlled by the Lukoil group.

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Prior to the COVID-19 pandemic, the ISAB refinery produced 10.6 million tonnes of refined products per year, 13% of Italy’s total production.

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