Italy to inject up to 1 billion euros into Ilva steel plant - draft

Italy plans to inject up to 1 billion euros ($1.02 billion) into one of the largest steel plants in Europe to help it cope with soaring energy prices, a draft government decree seen by Reuters showed.

Italy plans to inject up to 1 billion euros ($1.02 billion) into one of the largest steel plants in Europe to help it cope with soaring energy prices, a draft government decree seen by Reuters showed. Geopolitical tensions stemming from Russia's invasion of Ukraine have propelled gas prices to historic highs, adding to supply-chain issues and environmental problems for plant owners Acciaierie d'Italia, formerly known as Ilva.

The group, whose main plant is in the southern Italian city of Taranto, is 38% controlled by state-owned agency Invitalia and 62% by the world's second largest steelmaker ArcelorMittal . Under the scheme, to be approved by the cabinet later on Thursday as part of a broader package aimed at shielding firms and families from surging energy costs, Invitalia can inject fresh capital for the plant with "a total amount not exceeding 1 billion euros."

($1 = 0.9815 euros)