EU sanctions against Russia endanger one of Italy’s largest refineries in Sicily. ISAB Srl in Priolo Gargallo is owned by Russian oil and gas giant Lukoil and supplies other plants and factories on the island. The sanctions could endanger up to 10,000 jobs in the structurally weak region in the south of our neighboring country.
About a fifth of Italy’s crude oil imports are processed at the massive petrochemical plant 12 kilometers northwest of Syracuse. It is one of the largest refineries in Europe and imports oil from the Black Sea, the Middle East and North Africa. It is connected to other factories and facilities in the underdeveloped region. The loss could put a total of 10,000 jobs at risk.
In 2008, Lukoil acquired a 49 percent stake in the Sicilian refinery, which processes about 320,000 barrels of oil per day, from the Italian oil group Erg. Six years later, the Russian group became the sole shareholder of the company, which generates about eight percent of the region’s gross domestic product.
Lukoil announced the sale last year
In September last year, Lukoil announced plans to sell the refinery after the Syracuse State Department opened an investigation into public health risks. The sale is part of a strategy of the Russian group, which is in the process of rationalizing its activities abroad.
Unions fear for jobs
Unions are now concerned about thousands of jobs in a region already severely affected by unemployment. One possible solution could be the nationalization of the refinery complex, they say. Weeks of discussions, however, have so far yielded no results.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
