Italy’s biggest refinery in crisis three years after sale by Russia’s Lukoil

Another case of the #CuckooStrategy in action. Trafigura’s playbook is becoming painfully familiar: leverage special situations emerging in strategically vital assets by entering as lender, supplier, client, and minority investor. Then, watch as inflexible commercial terms sap the company’s viability from within (benefitting Trafigura) — and be ready to become the white knight once the company enters into financial distress.

illustration

The latest victim? Italy’s largest refinery, the ISAB plant in Sicily.

After EU sanctions cut off its former owner, Lukoil, the facility was hastily sold in 2023 to GOI Energy — a deal facilitated by Trafigura, Franco-Israeli tycoon Beny Steinmetz, and backed by Greek shipping magnate George Economou. The deal was shrouded in secrecy, pushed through 𝐝𝐞𝐬𝐩𝐢𝐭𝐞 𝐨𝐩𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐔𝐒 and with little regard for the operational expertise of the new owners.

Now, just three years later, the refinery is in crisis.

At the heart of the dispute: a 10-year supply and marketing agreement with Trafigura that GOI says is 𝐬𝐭𝐫𝐚𝐧𝐠𝐥𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐞𝐟𝐢𝐧𝐞𝐫𝐲’𝐬 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬, 𝐥𝐨𝐜𝐤𝐢𝐧𝐠 𝐢𝐭 𝐢𝐧𝐭𝐨 𝐭𝐞𝐫𝐦𝐬 𝐭𝐡𝐚𝐭 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐭𝐡𝐞 𝐭𝐫𝐚𝐝𝐞𝐫’𝐬 𝐦𝐚𝐫𝐠𝐢𝐧 𝐰𝐡𝐢𝐥𝐞 𝐟𝐨𝐫𝐜𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐞𝐟𝐢𝐧𝐞𝐫𝐲 𝐭𝐨 𝐨𝐩𝐞𝐫𝐚𝐭𝐞 𝐚𝐭 𝐚 𝐥𝐨𝐬𝐬. Sound familiar?

This is more than a corporate dispute — it's a strategic failure with national consequences: 20% 𝐨𝐟 𝐈𝐭𝐚𝐥𝐲’𝐬 𝐫𝐞𝐟𝐢𝐧𝐢𝐧𝐠 𝐜𝐚𝐩𝐚𝐜𝐢𝐭𝐲, 𝐨𝐯𝐞𝐫 9,500 𝐣𝐨𝐛𝐬 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐜𝐫𝐞𝐝𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐨𝐟 𝐭𝐡𝐞 𝐈𝐭𝐚𝐥𝐢𝐚𝐧 𝐠𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐚𝐫𝐞 𝐚𝐭 𝐬𝐭𝐚𝐤𝐞.

But still, Trafigura insists that the signed agreements are “at arm’s length and market-based” — a phrase that’s starting to sound more like a shield than a standard.

Just like in the Nyrstar case, Trafigura’s involvement seems to systematically precede decline, restructuring, or forced divestment — all while consolidating control over essential industrial infrastructure.

𝐀𝐭 𝐰𝐡𝐚𝐭 𝐩𝐨𝐢𝐧𝐭 𝐝𝐨 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐩𝐨𝐥𝐢𝐜𝐲𝐦𝐚𝐤𝐞𝐫𝐬 𝐚𝐧𝐝 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐬 𝐰𝐚𝐤𝐞 𝐮𝐩?

How many strategic assets need to be quietly hollowed out before we realize that this is not just capitalism — it’s a coordinated strategy that prioritizes financial engineering over industrial resilience, with a ruthless profit and power pursuit as the sole objective?

The question isn’t no longer whether this is legal. It’s whether it’s sustainable, in line with the EU's geopolitical interests, norms and values.

And who ends up paying the price.

Go to original article 'Financial Times'

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