The Ministry of Economy of the Interim Government, a parallel body in east Libya, has issued a resolution to ban the Italian companies from working in Libya or establishing any joint Libyan-Italian firms.
The resolution referred for the prohibition of opening or extending branches of Italian companies in Libya until further notice.
Minister Munir Asar told his government’s news agency that the decision was taken due to "Italy's outspoken hostility towards Libyan people".
“Our friends who stood with us in our crisis are more entitled for economic partnership, especially that the technology is not monopolized by the Italians”, he said.
The resolution only applies to the eastern region where the government has control.
Relations between Italy and east Libya authorities are tense. In June, the Defense and National Security Committee of House of Representatives declared Italian Ambassador Giuseppe Perrone persona non grata for a meme tweet mocking the Committee’s “terror list”.