Iraq Seeks Temporary US Sanctions Relief for Lukoil

According to Iraqi energy sector officials, the Iraqi government is pursuing a six-month exemption from US sanctions affecting the Russian oil company Lukoil. This measure aims to prevent disruptions in Lukoil's operations at the significant West Qurna 2 oil field.

Officials, who requested anonymity, indicated that the Iraqi Oil Ministry has ruled out the possibility of Baghdad acquiring Lukoil's stake in the project, citing the field's size and management requirements as beyond the capabilities of state-run companies. One official remarked:
"The Lukoil field is a substantial asset that is challenging to manage."

Potential Buyers for Lukoil's Stake

Sources revealed that Iraq is aware of three potential buyers for Lukoil's stake in the field, including one Chinese company and two unnamed Western firms.

The topic of sanctions relief was a primary focus during the meeting between Prime Minister Mohammed Shia al-Sudani and former Lukoil CEO Wahid Alikberov today.

Background on Sanctions

The US sanctions were imposed last October as part of a package by the Trump administration targeting Rosneft and Lukoil due to the Ukraine conflict and insufficient progress on political resolutions. Lukoil is reportedly looking to sell its foreign assets to avoid sanctions, while the US Treasury extended the deadline for the company by three weeks in mid-November to find investors for its assets.