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Sicily Refinery Risks Bankruptcy Due to EU Oil Sanctions

REFINING

Russia’s Lukoil rejected an offer to sell its Italian refinery to a US private equity group according to the Financial Times sources.

  • Vitol had offered financing to US group Crossbridge Energy Partners to help purchase the ISAB refinery after Lukoil expressed concerns about the US group’s ability to finance the transaction.
  • The refinery is struggling to get bank financing to buy non-Russian oil. The Italian government is under pressure to find a solution to stop the refinery's bankruptcy when the EU oil embargo on Russian crude starts on Dec 5.
  • The ISAB refinery accounts for around 20% of Italy's refinery capacity and employs 1,000 workers. Italy was still receiving over 300kbpd of Russian seaborne crude in October.

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