Italy Imports More Russian Oil despite Impending Embargo

Italy Imports More Russian Oil despite Impending Embargo

Even as the European Union decided to reduce Russian crude oil imports by 90% by the end of the year, Italy has become the only country in Europe to increase them, an unintended consequence of EU sanctions against Russia.

Meant to punish Russia for invading Ukraine, the EU oil embargo is now putting at risk one of Italy’s largest refineries, located in Sicily, which would deal an economic blow to the depressed region’s economy, The Associated Press said.

Italy agreed with its EU partners to cut Russian crude imports by 2023, a move that Premier Mario Draghi called “a complete success,'' that ”just a couple of days ago wouldn't have been believable."

But Rome also has to deal with the fate of the refinery in Sicily owned by Russia’s Lukoil. As a result of previous sanctions against Russia, ISAB Srl has paradoxically gone from processing 15% of Russian crude to 100%.

That’s because banks have refused to take the risk of extending credit to Russia-controlled ISAB that would allow it to buy oil from non-Russian sources, even if not specifically barred from doing so, said Matteo Villa, an energy analyst at the ISPI think tank in Milan.

Ships continue to arrive at the port-side refinery