Lukoil weighs trading split, refinery sale to keep oil flowing

Lukoil weighs trading split, refinery sale to keep oil flowing

Lukoil is considering splitting its oil-trading unit and selling a refinery in Italy as it seeks to limit the impact of sanctions and a forthcoming European Union embargo on Russian crude.

Russia’s biggest private oil producer may restructure its trading arm, Litasco SA, by creating two arms, with one based in Geneva and the other in Dubai, people familiar with the matter said.

Lukoil, which isn’t itself under EU sanctions, is also exploring the possibility of selling its 300,000 barrel-a-day ISAB refinery in Sicily, said other people with knowledge of that project. The plant has been snapping up Russia’s Urals oil but risks being unable to source the crude once the EU ban on seaborne flows comes into effect on Dec. 5. Lenders have cut off financing that would allow Lukoil to buy other supplies, according to the people.