Iraq canceled three crude oil cargoes from Lukoil oil company in November due to US and UK sanctions on the Russian company, according to two market sources. The decision affects Lukoil’s equity production at the West Qurna-2 field.
The canceled cargoes were scheduled for November 11, 18, and 26. Lukoil and Iraq’s state firm SOMO did not comment immediately. The move follows heightened sanctions targeting Russia’s largest oil companies.
In September, US President Donald Trump imposed sanctions on Lukoil and Rosneft, marking the toughest measures on Russian businesses since the Ukraine war began. On October 15, the UK also sanctioned Lukoil, Rosneft, and 44 older “shadow fleet” tankers with opaque ownership. The measures aim to tighten energy sanctions and limit Kremlin revenue.
Lukoil produces roughly 2% of global oil output. The company’s name comes from three oil towns in western Siberia: Langepas, Urai, and Kogalym. Its largest foreign asset is Iraq’s West Qurna-2 field, where it holds a 75% stake. The field produced more than 480,000 barrels per day in April, according to Russia’s Interfax.
Beyond Iraq, Lukoil owns the 190,000 bpd Neftohim Burgas refinery in Bulgaria, the largest in the Balkans, and the Petrotel refinery in Romania. It supplies oil to Hungary, Slovakia, and Türkiye’s STAR refinery, owned by Azerbaijan’s SOCAR, which depends heavily on Russian crude.
Lukoil faces disruptions in Iraq as the country cancels three of its crude oil cargoes scheduled for November. The decision follows concerns over US and UK sanctions targeting the Russian energy giant. The canceled shipments were to load from the West Qurna-2 oil field, where Lukoil holds a 75% stake, one of its largest foreign assets.
The company also runs oil terminals, retail fuel chains, and upstream and downstream projects in Central Asia, Africa, and Latin America. These operations make Lukoil a key global energy player despite ongoing sanctions.
The cargo cancellations highlight how sanctions directly impact Russian energy companies. They also show Iraq’s careful approach to global trade amid geopolitical tensions. The West Qurna-2 field remains a vital asset for both Iraq and Lukoil.
