Lukoil, Russia’s second-largest oil producer, announced on Monday that it had reached an agreement to sell its ISAB refinery in Sicily to GOI ENERGY, which has partnered with international commodities trader Trafigura, Reuters and Agerpres reported.

The ISAB refinery, which employs about 1,000 people, is owned by the Swiss trading company Litasco SA, which sells 89% of its production.

In turn, Litasco is controlled by the Lukoil group. The refinery in Sicily, one of Italy’s poorest regions, is responsible for 20% of the country’s refining capacity, and its operations have been hit since an embargo on Russian oil by sea came into effect on December 5.

The deal will be completed by March 31, 2023, subject to the fulfillment of certain conditions, including obtaining the approval of the authorities, especially the Italian government, Lukoil said on Monday.

The company said that Trafigura ensured uninterrupted supply of raw materials and necessary working capital to the refinery.

In early December, the new Italian government led by Giorgia Maloni placed the refinery under temporary state management to avoid its closure and guarantee the continuity of the national energy supply.

The previous Italian government also considered nationalizing the ISAB oil refinery in Sicily because of its strategic importance.