Shafaq News – Baghdad

Fresh US sanctions on Russia’s oil giants Rosneft and Lukoil will have little to no effect on Iraq’s energy sector, oil analyst Hamza al-Jawahiri told Shafaq News on Saturday.

Al-Jawahiri said Iraq is bound by major investment contracts with both companies, making compliance with Washington’s measures “neither necessary nor practical.” He warned that breaking these agreements would expose Baghdad to “significant financial losses,” noting that “even European states have not fully observed the sanctions—some continue to import Russian oil and gas.”

He added that the announcement of sanctions caused only a modest price uptick—from $60 to $65 per barrel—which he attributed to China’s large strategic reserves that curbed further market volatility.

Lukoil operates Iraq’s West Qurna 2 field in Basra, producing around 400,000 barrels per day and holding an estimated 14 billion barrels in reserves. It also owns stakes in northern oil fields and the Eridu (Block 10) field between Dhi Qar and al-Muthanna, which holds about 6 billion barrels. Rosneft maintains a strong presence in the Kurdistan Region.

President Donald Trump announced the new sanctions on October 23 against the two largest Russian oil firms, in a move aimed at tightening pressure on Moscow to agree to a peace deal in Ukraine.