ERBIL, Kurdistan Region of Iraq - Iraqi Prime Minister Mohammed Shia’ al-Sudani met with the founder of Russian oil and gas giant Lukoil on Monday to discuss solutions and mechanisms “to ensure stable oil production” following the measures taken by the US Treasury against the company.

The US Treasury’s Office of Foreign Assets Control (OFAC) on Friday issued licenses allowing limited Lukoil operations abroad, including retail stations and Bulgarian entities, despite sanctions, to keep energy trade and projects on track.

In October, the US also imposed heavy sanctions on major Russian oil companies, Rosneft and Lukoil, citing “a lack of serious commitment to a peace process to end the war in Ukraine.”

Sudani and Lukoil founder Vagit Alekperov discussed “the importance of avoiding any impact on Iraq’s ability to contribute to oil production,” read a statement from the prime minister’s office. 

“Lukoil currently produces approximately 480,000 barrels per day from the West Qurna oil field.”

Lukoil is one of Iraq’s biggest foreign investors, holding a 75 percent stake in the West Qurna-2 field, the world’s second-largest oil field, with around 14 billion barrels of recoverable reserves.

Sudani reaffirmed Iraq’s commitment to global oil market stability, saying the country aims to protect “the interests of both producers and consumers” while maintaining stable, approved oil production levels.

On October 31, Russian Ambassador to Iraq Elbrus Kutrashev told The New Region that while sanctions may complicate companies’ routine operations, investment in Iraq and the Kurdistan Region will continue.

Kutrashev noted that Moscow is interested in increasing investment in Baghdad.

Earlier in November, a source told The New Region that Lukoil’s plan to sell some foreign assets does not include its holdings in Iraq, including its stake in the West Qurna-2 oil field in Basra, and that Rosneft’s projects in the Kurdistan Region remain unchanged.

On November 3, Lukoil announced that it began selling some overseas assets after being added to a US sanctions list. The company said it is restructuring its foreign investments due to restrictions.