Italian Gov't May Request Eni To Manage Lukoil's Oil Refinery In Sicily - Minister

Italian Gov't May Request Eni to Manage Lukoil's Oil Refinery in Sicily - Minister

The Italian government may put its energy giant Eni in charge of running the an oil refinery owned by Russia's Lukoil and located in the Sicilian municipality of Priolo Gargallo, Italian Industry Minister Adolfo Urso said on Saturday

ROME (Pakistan Point News / Sputnik - 03rd December, 2022) The Italian government may put its energy giant Eni in charge of running the an oil refinery owned by Russia's Lukoil and located in the Sicilian municipality of Priolo Gargallo, Italian Industry Minister Adolfo Urso said on Saturday.

On Thursday, the Italian government adopted a decree laying out an emergency scheme to keep the ISAB oil refinery operational, as it supplies around 20% of Italy's fuel needs.

"By passing this decree, the government assumes responsibility of temporary emergency management, possibly through another oil company, which could be Eni. This will guarantee continuous production," the minister told reporters on the sidelines of a public event in the Sicilian city of Catania.

Urso said he has received assurances from US authorities that the banks which will fund operations under the interim management scheme will not be targeted by sanctions.

The ISAB oil refinery's operation was put at risk following the sixth package of sanctions against Russia, which provided for the gradual introduction of an embargo on Russian oil imports. The eighth package laid a legislative basis for setting a price cap for maritime shipment of Russian oil to third countries. The Lukoil-owned plant is currently refining Russia's Urals oil.

On Friday, the European Union reached an agreement on setting a price cap on Russian oil at $60 per barrel. The agreement reportedly provides for a review mechanism to keep the price cap at 5% below the market value. The G7 nations and Australia also agreed to set a $60 price ceiling on oil from Russia, which will enter into effect on December 5. Meanwhile, the price cap on Russian petroleum products developed by the US-led international coalition will take effect on February 5, 2023.