Lukoil refuses to sell Sicilian refinery to U.S. investment company Crossbridge - media

MOSCOW. Nov 7 (Interfax) - Lukoil has rejected an offer from Crossbridge Energy Partners, an American private investment company, to buy its oil refinery complex in Sicily, the Financial Times reported, citing sources.

Even the fact that Vitol, a leading global oil trader, agreed to provide Crossbridge with financing on favorable terms did not help to implement the deal, the sources said.

If a buyer is not found, the ISAB plant could face the prospect of closure, because it will not be able to receive Russian crude after the entry into force of the EU embargo on oil supplies from Russia by sea starting on December 5. A change of ownership of the plant, which supplies 22% of Italy's fuel, would allow it to seek alternative sources of fuel.

Italian officials close to the negotiations said that ISAB had asked banks for a loan of 700 million euros to cover operating costs, but they do not want to take such risks because of the extensive sanctions against Russian companies. The management of the banks was not convinced even by a letter from the head of the Italian Treasury, Alessandro Rivera, confirming that neither the company nor its owners are subject to EU sanctions, FT said.

"If the Russians don't want to sell the plant to the Americans, and if banks refuse to open lines of credit to them, nationalization will remain the only option," one official said.

Vitol declined FT's request for comment. The Italian Treasury and ISAB did not respond to requests for comment.

The ISAB refinery complex in southeastern Sicily is the third-largest in Europe. Dubai-based Onex Holding is also interested in acquiring the refinery.