Russia bypasses oil sanctions by using the Priolo refinery in Sicily, and exploiting a hole in the sanctions legislation. The Sicilian Lukoil refinery in Priolo is the passage that allows Russian crude to circumvent American sanctions for the war in Ukraine and to arrive in the United States, sometimes returning to Europe. This was revealed by an investigation by the Wall Street Journal, which explains the journey of Russian oil in a video investigation. American sanctions provide for an exclusion for crude “substantially transformed into a product made abroad”.
Once transformed into the Priolo refinery, the second largest in Italy and the fifth in Europe, Russian oil becomes an “Italian product” and lands in the Exxon plants in Texas or in New Jersey in those of Lukoil, which in the USA has 230 service stations in 11 states (mostly owned by American individual franchises). Before the sanctions, the Priolo refinery processed crude oil from various countries, now 93% comes from Russia, as European banks have blocked financing to the refinery in response to the war in Ukraine. Before the invasion, the flow instead came from different countries and the Russian share represented 30%. “Russian oil is fueling American cars through the sanctions loophole,” writes the American newspaper. Lukoil is the second largest Russian oil company, and in recent months it has been at the center of controversy and disturbing events several times, as well as suspicious deaths of some top managers.
Just in recent days, the new Meloni government had begun to deal with the Priolo dossier, above all fearing for local employment: there is a risk of losing several jobs since the total embargo on Russian oil comes into force in December. “I hope to be able to reach this goal in good time, I am confident”, said the Minister of Enterprises and Made in Italy, Adolfo Urso, regarding the possibility that the government will be able to find a solution for the Priolo Isab refinery , controlled by Lukoil, before November 7, the deadline for the last Russian oil order, and after which the embargo will be triggered.
The executive was thinking of some solutions: to avoid the closure of the Priolo Isab refinery, “all the hypotheses” are in place, including that of the Sace guarantee, explained Urso. “This is also conceivable”, the minister replied to the question whether an intervention by Sace is possible, but, he added, “I would not like to anticipate anything, as we always have to talk about things done, all the possible hypotheses are in place, we we are dealing with this dossier as with all the others that are critical and that must be addressed ».
The issue was also addressed together with the Ministry of Economy. Ministers Giancarlo Giorgetti and Urso, at the end of an in-depth interview last week, had taken note of the technical decision of the financial security committee of the Mef which represented an important step forward to be able to achieve all the conditions for a favorable outcome of the affair of the refinery of Priolo. According to what was learned last week from government sources, the financial security committee of the MEF, responding to a request from the Isab refinery, controlled by Lukoil, would have assured that it is not subject to any restrictive measures by the EU.
But now this “hole” in the sanctions is being used by Russia, denounces the Wall Street Journal. And Italy once again appears to be the spearhead of Moscow to find banks in the European Union, and to circumvent sanctions.