Russia’s global oil ambitions have hit a dramatic roadblock as Lukoil, one of the country’s energy giants, declared force majeure at its prized West Qurna-2 oil field in Iraq, according to reports from Reuters and Meduza. The move, announced on November 10, 2025, sends shockwaves through the international oil market and underscores the mounting pressure from U.S. sanctions targeting Russian oil producers over the ongoing war in Ukraine.
West Qurna-2 isn’t just any oil patch. It’s one of the world’s largest oil fields and stands as Lukoil’s crown jewel abroad. The site, which churns out approximately 480,000 barrels per day, accounts for about 9 percent of Iraq’s total oil output—a figure that speaks volumes about its strategic significance. As Kursiv notes, the force majeure notice was formally delivered to Iraq’s oil ministry last week, a step that signals deepening trouble for the Russian company’s foreign operations.
What exactly does “force majeure” mean in this context? Essentially, it’s a legal maneuver that allows Lukoil to protect itself from penalties for failing to meet contractual obligations due to circumstances beyond its control—in this case, the tightening noose of U.S. sanctions. But for Iraq and the broader oil market, it’s a warning shot: if the deadlock isn’t resolved within six months, Lukoil could be forced to shut production and walk away from the project entirely. “If the force majeure conditions are not resolved within six months, Lukoil will shut production and exit the project entirely,” a senior Iraqi official told Meduza.
The immediate fallout has been swift and severe. Iraq has already suspended both cash payments and crude shipments to Lukoil, resulting in the cancellation of roughly 4 million barrels of crude oil that were allocated to the company for November 2025. Iraq’s state oil marketer, SOMO, has also paused all loadings under Lukoil’s equity share. For a company that has long prided itself on its international reach, these developments mark a stunning reversal of fortune.
“West Qurna-2 is one of the world’s largest oil fields and Lukoil’s key foreign asset, contributing roughly 9% of Iraq’s total oil output and producing around 480,000 barrels per day,” an Iraqi oil industry official emphasized to Kursiv, highlighting the scale of the disruption.
Adding to the turmoil, Lukoil has ended the contracts of all non-Russian foreign staff at the West Qurna-2 site, leaving only Russian and Iraqi personnel to keep the operation running—at least for now. This move, reported by Kursiv, is a clear indication of the company’s efforts to tighten its belt and prepare for an uncertain future.
The roots of this crisis stretch back to last month, when Washington ramped up sanctions on Russian oil majors Lukoil and Rosneft. The U.S. Treasury’s goal: to squeeze Moscow’s war chest and apply pressure over the conflict in Ukraine. The sanctions not only target Russian oil directly but also complicate the financial and logistical lifelines that keep companies like Lukoil afloat in foreign markets.
In a bid to sidestep these restrictions, Lukoil tried to offload its foreign assets to Swiss commodity trader Gunvor. But that escape hatch slammed shut last week when the U.S. Treasury rejected the proposed deal, describing Gunvor as a Kremlin “puppet.” Gunvor officially withdrew its offer to acquire Lukoil’s foreign assets on November 6, 2025, as reported by Kursiv. The failed sale has left Lukoil with few options and heightened the sense of urgency among European governments and energy companies scrambling to secure vital assets before the November 21 sanctions deadline.
Bulgaria, for one, isn’t waiting around. The government in Sofia has moved quickly to step up oversight of Lukoil’s Burgas refinery, a major energy hub on the Black Sea. According to Meduza and Kursiv, new legal changes now allow Bulgarian authorities to assume ownership of the refinery and transfer operations to a new buyer if the situation demands. The move is part of a broader European effort to shield national energy systems from the fallout of Russian sanctions and asset seizures.
“Bulgaria’s government is preparing to take control of Lukoil’s Burgas refinery and has stepped up oversight, enabled by recent legal changes,” Kursiv reported, illustrating just how quickly the ground is shifting under Lukoil’s feet.
For Iraq, the crisis is a double-edged sword. On one hand, the suspension of payments and crude shipments to Lukoil disrupts the country’s production plans and could potentially unsettle global oil prices. On the other, the government is now forced to weigh the risks of being seen as too close to sanctioned Russian firms against the practical need to keep its oil flowing and its economy stable. The decision to halt all cash and crude payments to Lukoil, as outlined by Meduza and Kursiv, reflects the delicate balancing act facing Iraqi officials as they try to navigate a rapidly changing geopolitical landscape.
The West Qurna-2 saga is also sending ripples far beyond Iraq and Bulgaria. Across Europe, energy companies and governments are racing to secure alternative supplies and insulate themselves from the possibility of further disruptions. The scramble is especially intense in countries that have historically relied on Russian oil and gas to power their economies. With the November 21 sanctions cut-off looming, the pressure is on to finalize new deals, diversify sources, and avoid being left in the lurch if Russian assets are seized or shuttered.
The broader context is impossible to ignore. The U.S. sanctions campaign is part of a larger strategy to isolate Russia economically and politically over its actions in Ukraine. By targeting the oil sector—a major source of revenue for the Kremlin—Washington hopes to limit Moscow’s ability to fund its military operations and exert influence abroad. But as the Lukoil crisis demonstrates, these measures come with significant collateral damage, affecting not just Russian companies but also their international partners, host countries, and the global energy market at large.
As for Lukoil, the company now faces a stark choice: resolve the force majeure conditions and find a way to operate within the new sanctions regime, or prepare for a complete withdrawal from one of its most valuable foreign ventures. The next six months will be critical. If the standoff isn’t resolved, Lukoil could be forced to exit West Qurna-2 altogether—a move that would reverberate through the oil industry and signal a major retreat for Russia’s international energy ambitions.
With European governments tightening their grip on Russian assets and the U.S. Treasury showing no signs of relenting, the future of Lukoil’s global operations hangs in the balance. The West Qurna-2 crisis is a powerful reminder that in today’s interconnected world, the ripples from sanctions and geopolitical conflict can upend even the mightiest of oil empires.
