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Lukoil Reels From U.S. Sanctions as Iraq Halts West-Qurna-2 and Bulgaria Puts Burgas Under State Control

Global counterparties face secondary penalties under a November 21 wind-down deadline.

Overview

  • Iraq’s state marketers froze payments and stopped crude loadings from the Lukoil-operated West-Qurna-2 field, prompting the company to declare force majeure.
  • The U.S. Treasury blocked a proposed sale of Lukoil assets to Gunvor, labeling the trader a Kremlin puppet, and Gunvor withdrew its offer.
  • Financial Times reporting puts roughly $14 billion of Lukoil’s foreign holdings at risk as the firm races to divest before the deadline.
  • Reuters reports partners are rushing Lukoil’s overseas assets and that the company dismissed its non-Russian foreign employees by email.
  • Bulgaria’s parliament voted to place Lukoil’s Burgas refinery under state control to safeguard domestic fuel supply.