Baghdad (IraqiNews.com) – Iraq stopped the loading of three crude oil cargoes from Moscow-based LUKOIL in November amid concerns about US and UK sanctions on the Russian oil firm.
Two market sources told Reuters on Tuesday that the State Organization for Marketing of Oil (SOMO) has cancelled shipments from Lukoil’s equity output at the West Qurna-2 oil field.
The shipments were scheduled to load on November 11, 18, and 26, according to the sources.
Last Thursday, LUKOIL announced that it will sell its worldwide operations to Switzerland’s Gunvor Group.
According to Russian media outlets, the transaction comes after the US Treasury Department said in October that it will impose sanctions on Russia’s Lukoil and Rosneft.
Lukoil is selling its global assets in response to sanctions imposed by US President Donald Trump to force Russia into agreeing to a cease-fire in its war with Ukraine.
The company said in a statement that it is already in negotiations with potential purchasers. The deal would take place under a sanctions grace period that allows for transactions with Lukoil until November 21, according to the Associated Press (AP).
LUKOIL’s primary overseas asset is Iraq’s West Qurna 2 oil field, one of the world’s largest, in which it has a 75 percent stake, according to Reuters.
The transaction is still subject to approval from US regulators, including the Office of Foreign Assets Control (OFAC).
Incorporated in Cyprus, Gunvor Group is a global energy commodities trading corporation based in Geneva, Switzerland.
