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Italy may apply for deferral of embargo on Russian oil for operation of refinery in Sicily

Because of the existing risk of the plant’s closure on Friday, several thousand people in the Italian city of Syracuse (the island of Sicily) went to a rally organized by trade unions

ROME, November 18. /TASS/. Italy can apply for a postponement of the embargo on Russian oil to guarantee supply of crude oil to Lukoil’s ISAB refinery in Sicily. Adolfo Urso, Minister of Enterprises and Made in Italy products said on Friday after meeting in Rome with governor of Sicily Renato Schifani, trade union representatives, as well as the local ISAB management.

One option is "to discuss a possible postponement of the oil embargo with Europe, as other countries have been allowed to do," Urso said, as quoted by ANSA.

Back in June, the EU announced its intention to impose an embargo on the import of Russian crude oil into the community by sea starting in December and imports of oil products beginning in 2023. Several EU countries that receive oil through the pipeline, notably Hungary, have been granted a grace period and the right to continue buying Russian oil until at least the end of 2025.

The Italian minister also did not rule out possible nationalization of the enterprise. In addition, Urso offered guarantees from the Italian export credit agency SACE to resume bank lending to the plant.

As representatives of the refinery said earlier, although neither the refinery nor Russian oil major Lukoil fell under anti-Russian sanctions, they were refused bank loans to purchase oil from other suppliers, based on the best price offers on the market. Currently, the refinery can only use Russian crude from its parent company.

Work at the refinery in Sicily may be stopped due to problems with the supply of crude oil from Russia by sea, which will cease beginning on December 5 in accordance with the seventh package of EU sanctions. According to some reports, ISAB covers 22% of Italy's needs for automotive fuel. If the refinery is closed, about 10,000 people may lose their jobs.

Because of the existing risk of the plant’s closure on Friday, several thousand people in the Italian city of Syracuse (the island of Sicily) went to a rally organized by trade unions.