Russia’s Lukoil plans to restructure its trading unit Litasco and sell Italian oil refinery ISAB to reduce the impact of sanctions and the upcoming EU embargo on Russian oil, Bloomberg reports with reference to Sega.
According to the press agency, it is planned that Litasco will be divided into two divisions – one in Geneva, which will be called Litasco West, and the other in Dubai, Rador quotes.
Litasco West will continue to process non-Russian oil shipments to Europe and operate refineries in Bulgaria and Romania.
The Swiss company will continue to hold a minority stake in the oil refinery Total Energies SE in the Netherlands. A Dubai-based subsidiary called Litasco Middle East will be responsible for Russian oil trading and operations in Asia.
The Russian oil company, which is not subject to EU sanctions, is exploring the possibility of selling its 300,000 bpd ISAB refinery in Sicily, sources told Bloomberg.
The plant operates on oil supplies from the Urals and is at risk of closing after December 5, when the EU embargo on Russian oil comes into effect.
Many European firms and banks have already reduced their dependence on Russian barrels, fearing sanctions or reputational damage.
ISAB, one of the largest European oil refiners, has already attracted the interest of potential buyers such as the American fund Crossbridge Energy Partners and Dubai’s Onex Holding.
The refinery supplies about a quarter of Italy’s fuel products and employs more than 3,000 people.
It is currently unclear whether Lukoil will change its stake in the commercial unit in Geneva. Litasco has already moved most of its commercial business to Dubai, where the number of employees has grown to around 40 people.
Dubai has become the best destination for Russian citizens and companies wishing to move abroad.
The United Arab Emirates, whose main business center is Dubai, did not follow Europe and the United States and did not impose sanctions against Russia after the invasion of Ukraine. In addition, Dubai is attractive with low taxes. (joyful)
Source: Hot News RO
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.