Iraq Requests Temporary U.S. Sanctions Waiver for Lukoil Operations

According to "Reuters," Iraqi officials in the energy sector have indicated that the Iraqi government is pursuing a six-month waiver from U.S. sanctions on the Russian oil company Lukoil. This request aims to prevent disruptions to the company's operations at the significant West Qurna 2 oil field.

The officials, speaking on condition of anonymity, noted that the Iraqi Ministry of Oil has dismissed the possibility of Baghdad acquiring Lukoil's stake in the project. They emphasized that the scale and management requirements of the field exceed the capabilities of Iraq's state-owned enterprises. One official remarked, "The Lukoil field is a substantial undertaking that is difficult to manage."

Potential Buyers for Lukoil's Stake

Sources indicate that Iraq is aware of three potential buyers for Lukoil's stake in the West Qurna 2 field, which include a Chinese firm and two Western companies, although their identities remain undisclosed.

The sanctions waiver was a key topic during a meeting today between Iraqi Prime Minister Mohammed Shia' al-Sudani and former Lukoil CEO Vagit Alekperov.

Background on the Sanctions

The U.S. sanctions were enacted last October as part of a broader package implemented by the Trump administration targeting Rosneft and Lukoil due to the ongoing conflict in Ukraine and insufficient progress in political negotiations. Lukoil is actively seeking to divest its foreign assets to mitigate the impact of these sanctions, with the U.S. Treasury having recently extended the deadline for the company to secure investors for its assets by an additional three weeks in mid-November.