Lukoil Declares Force Majeure at Iraqi Oil Field, Faces Refinery Seizure in Bulgaria

As of November 11, 2025, the Russian oil company Lukoil is facing major challenges in its international operations due to the impact of U.S. sanctions. The company has declared force majeure at its West Qurna-2 oil field in Iraq, one of the world's largest oilfields and Lukoil's most prized foreign asset.

The force majeure declaration, which allows Lukoil to legally avoid contractual obligations, comes as Iraq has halted all cash and crude oil payments to the company due to the sanctions. If the issues are not resolved within six months, Lukoil may be forced to shut down production and exit the West Qurna-2 project entirely.

Separately, the Bulgarian government is conducting inspections and implementing security measures at Lukoil's Burgas oil refinery, with plans to seize control of the site. Last week, Bulgaria adopted legal changes allowing it to take over the refinery and sell it to a new owner.

These developments mark the biggest fallout yet from the sanctions imposed on Russian oil majors Lukoil and Rosneft last month as part of the U.S. government's efforts to end the war in Ukraine. Lukoil, the Russian company with the most exposure to international markets, is now facing the prospect of losing its most valuable foreign asset and seeing its Burgas refinery seized by the Bulgarian authorities.