EMEA News
State may Step in to Save Augusta Refinery: Report
The Italian government looks set to nationalise a Lukoil-owned refinery in Sicily ahead of the European embargo on seaborne Russian oil that comes into effect next week.
According to a Reuters report citing Italian media, a cabinet decision is likely to be taken later this week.
With the state taking over management, the plant will be able to continue production by purchasing oil from other suppliers, with state-owned credit agency SACE providing guarantees to the creditor banks, according to the report.
The Sicilian plant accounts for around a fifth of Italy's refined oil product demand, according to media reports.
A bunker industry insider commented that under the embargo, letters of credit to purchase crude oil on the open market would be difficult to get and so threaten the plant's viability, adding that if it did close, the impact on bunker supply would be minimal.
