Italy has significantly increased its trade with Libya, with exports skyrocketing by 101.3% to €2.033 billion in the first seven months of 2026. This surge confirms Italy’s position as Libya’s largest trading partner, commanding a 17% share of the country’s imports, according to the Italian Trade Agency.
Overall, economic exchanges between Italy and Libya reached nearly €6.8 billion during this period, representing a 44.9% rise from the same time last year. While refined petroleum products remain the most substantial portion of Italian exports, accounting for 58.8% of total sales, there is a noted expansion into non-energy sectors such as construction, furniture, design, and consumer goods.
The increase in Italian trade aligns with Libya’s evolving strategy for fuel procurement. The state-owned National Oil Corporation has shifted focus toward international trading houses, including Vitol, Trafigura, and TotalEnergies. These companies will now supply gasoline and diesel directly from Mediterranean refineries, marking a significant change in Libya’s energy sourcing.
As a result of these developments, Russian market share in Libya has dramatically declined. Analysts from the global analytics firm Kpler reported a sharp drop in Russian fuel exports, which fell from 56,000 barrels per day in 2024–2025 to around 5,000 barrels per day in 2026. This shift away from Russian supply has been facilitated by Libya’s recent tenders for fuel, which are now largely sourced from Western companies.
According to Reuters, the reduced reliance on Russian imports is expected to continue as Western firms dominate the Libyan energy market. Italy’s increased fuel supply now totals 59,000 barrels per day, primarily delivered from the ISAB and Sarroch refineries. Libero Testori, director of the Italian Trade Agency’s Tripoli office, noted a growing interest from Italian companies looking to diversify local supply chains.
The evolving trade landscape not only affects traditional fuel sourcing but also reflects broader economic ties between Italy and Libya, indicating that Mediterranean relationships may become increasingly significant in the context of shifting geopolitical alliances.
