Italian government signs bailout of Lukoil's refinery

ROME, Dec 2 (PRIME) -- The Council of Ministers of Italy approved a decree late on Thursday to bailout a refinery owned by Russia's Lukoil in the Sicilian town of Priolo, the government said in a statement on Friday.

Sources close to the government told PRIME that the decree envisages temporary management on the plant for up to 12 months with a possibility of one 12-month rollover. The document also stipulates assignment of a ministerial commissar.

Senator Antonio Nicita said that under trust management, the refinery could buy non-Russian oil, restart credit lines and will be allowed to change the owner by using the Golden power instrument.

The refinery may lose fuel after the E.U. introduces the sixth package of sanctions that includes a ban on Russian fuel imports on December 5. According to media reports, all scenarios of its development, including nationalization were considered.

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