Libya: Russian oil company Taftnet has signed an agreement to build a refinery

Russian oil company Taftnet has reportedly won a concession to build a new oil refinery in Libya, amid controversy between the two rival governments in the war-torn country, the New Arab reported on June 4, citing East-based investment minister Ali Saidi Qayedi.

The proposal was made early last month to attract investment to the region. Libya's eastern government does not have exclusive authority over oil contracts. The state-owned National Oil Corporation (NOC) should be the authority approving such investment agreements in this North African country. 

Qayedi stressed in May that Russia had plenty of crude oil, claiming that its refining project in Libya would help it overcome Western sanctions.

"Crude oil will be transported and oil derivatives will then be sold," Qayedi told the Libya Observer at the time. He also said that the success of the Taftnet project would open up more investment opportunities for Russian companies in Libya.

Two rival governments currently exist in Libya. The internationally renowned Libyan government, led by Prime Minister Abdul Hamid Dbeibah, is based in the capital Tripoli. On the other hand, Osama Hammad heads the government in Benghazi, and enjoys the support of the eastern-based House of Representatives.

Russia's Wagner militia is well established in eastern Libya, where it supports army chief Khalifa Haftar. The Kremlin is also seeking to unlock investment opportunities for Libya's economic development.