Shafaq News- Baghdad/ Washington

The US Treasury Department extended the deadline for energy companies to finalize deals to acquire foreign assets owned by Russian Lukoil to May 30, 2026, from an earlier May 1 cutoff.

According to a statement from the department, the United States has imposed strict conditions on the sales, barring the Russian side from receiving any direct payments, with proceeds instead held in frozen accounts under US supervision to prevent their use in financing the war effort.

The extension marks the fifth since sanctions were imposed last October. The move forms part of US pressure on Moscow over the war in Ukraine, with sanctions forcing Lukoil, Russia’s second-largest oil producer, to divest its international portfolio, estimated at $22 billion.

Lukoil operates the West Qurna-2 field in Basra, one of Iraq’s largest oil fields, under a contract with the Oil Ministry. Development began after 2010, with production starting in 2014. The field holds substantial reserves and produces between 400,000 and 470,000 barrels per day, making it a key contributor to Iraq’s oil revenues and export capacity.

Read more: Russia’s Lukoil turmoil deepens risks for Iraq’s West Qurna-2 oilfield