What is the status of Lukoil's operations in Iraq?

Lukoil has declared force majeure in Iraq, citing its inability to fulfill its contract due to the recently imposed US sanctions.

What is the impact of the US sanctions on Lukoil's global assets?

Lukoil's $20 billion in overseas assets are now at risk, as the company's attempt to sell its international operations was blocked by the US Treasury.

Home / Business and Economy / Iraq Cuts Ties with Russian Oil Giant Lukoil Over US Sanctions

Iraq Cuts Ties with Russian Oil Giant Lukoil Over US Sanctions

11 Nov

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Summary

Iraq can no longer work with Lukoil due to US sanctions
Lukoil declares force majeure, unable to pay employee salaries
Lukoil's $20 billion overseas assets at risk

Iraq Cuts Ties with Russian Oil Giant Lukoil Over US Sanctions

As of November 11, 2025, the Iraqi government has stated it can no longer collaborate with the Russian oil company Lukoil, which holds a significant 75% stake in the country's massive West Qurna-2 oil field. This decision comes in response to the recent US sanctions imposed on Lukoil.

Lukoil has informed Iraq's state oil company SOMO that it is declaring force majeure, citing circumstances beyond its control that prevent it from fulfilling its contractual obligations. According to the Iraqi Oil Ministry spokesman, Lukoil is unable to pay the salaries of hundreds of its employees, most of whom are Iraqi nationals, due to the sanctions announced by US President Donald Trump on October 22.

The situation has escalated further, as Lukoil's global assets, valued at over $20 billion, are now at risk. The company had attempted to sell its overseas operations to an Austrian-based company, but the US Treasury intervened to block the move. Iraq's State Oil Marketing Organization has also suspended crude oil payments owed to Lukoil for the month of November, estimated at around 4 million barrels.