Lukoil declared a major force majeure at the West Qurna-2 field in Iraq due to Western sanctions, and Iraq has stopped payments to the company.

Lukoil has announced a case of force majeure at the West Qurna-2 oil field in Iraq, according to Reuters sources. This decision was influenced by the sanctions imposed by the United States and the United Kingdom on Russian oil companies, including Lukoil, as a result of the invasion of Ukraine. Following these sanctions, Iraq suspended all cash and in-kind payments to Lukoil. The company sent an official letter to the Iraqi Ministry of Oil, stating that force majeure prevents the continuation of operations.

Iraqi officials warned that if the issues are not resolved within six months, Lukoil will be forced to shut down the exploitation of the field and withdraw completely. Additionally, the Iraqi state company SOMO has canceled the loading of three oil tankers due to the sanctions. The U.S. Treasury has set a deadline until November 21 for companies to cease transactions with Lukoil.