Lukoil, Russia’s second‑largest oil producer, is experiencing disruptions to its international operations because of U.S. sanctions. The company’s global footprint includes upstream oil and gas projects, refining, and fuel‑retail networks across Africa, Europe, Central Asia, the Middle East, and the Americas. Outside Russia, Lukoil produces half a million barrels of oil per day—about 0.5 % of global output—in countries such as Iraq, Kazakhstan and Azerbaijan.
In the Middle East, Lukoil holds a 75 % stake in Iraq’s West Qurna 2 oilfield, one of the world’s largest. The company has declared force majeure at the field after Iraq halted all cash and crude payments to Lukoil. Lukoil also has stakes in oilfields in Egypt, the United Arab Emirates and other regional countries.
In Central Asia, Lukoil’s interests include a 13.5 % stake in Kazakhstan’s Karachaganak field and a 5 % stake in the Tengiz field. It owns nearly 20 % of the BP‑operated Shah Deniz gas field in Azerbaijan and operates the South‑West Gissar gas field in Uzbekistan.
U.S. sanctions have also affected Lukoil’s refining assets in Bulgaria, Romania and the Netherlands. Its trading arm, Litasco, holds a 45 % stake in the Zeeland refinery in the Netherlands. In response, Bulgaria’s parliament passed legislation allowing the government to take control of Lukoil’s Neftohim Burgas refinery on national‑security grounds.
The sanctions are further impacting Lukoil’s fuel‑retail business. Some stations in Finland have run out of fuel because deliveries were halted, and the company’s network of roughly 430 stations in Finland, as well as its significant retail presence in Moldova, Bulgaria and Turkey, faces ongoing strain.
These sanctions are part of a broader response to Russia’s actions in Ukraine and are expected to affect Lukoil’s global operations for an extended period. As the situation evolves, it remains uncertain how Lukoil will navigate these challenges and preserve its position in the global energy market.
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