Iraqi officials reported wage arrears at a LUKOIL oil field.

About 1,300 Iraqi LUKOIL employees working at the West Qurna-2 field in Basra have faced a six-week salary delay due to US sanctions , according to the research organization Eco Iraq Observatory.

The organization reported that "employees previously received their salaries between the 22nd and 25th of each month through Baghdad and Al-Ahli banks," but this time they only received a payroll statement via email, without a bank transfer. Eco Iraq stated that it contacted LUKOIL and "sent email inquiries regarding the reasons for the delay, but has not yet received any response."

RBC sent a request to LUKOIL's press service.

West Qurna-2 is one of the world's largest oil fields, located in southern Iraq, 65 kilometers northwest of the port city of Basra. Initial recoverable reserves are approximately 14 billion barrels, of which over 90% are concentrated in the Mishrif and Yamama fields.

The field is being developed under a 25-year service contract signed in January 2010. LUKOIL owns a 75% stake in the project, while the Iraqi state-owned North Oil Company holds the remaining 25%. Under the agreement, LUKOIL finances the entire project, while North Oil Company bears no costs, receiving only its share of the royalties.

On October 15, the UK imposed blocking sanctions against LUKOIL. A week later, the US announced a similar decision. This also affected its foreign subsidiaries.

On November 10, LUKOIL declared force majeure at the West Qurna-2 field, it reportedREUTERS . According to the agency's sources, Iraq has stopped all cash and oil payments to LUKOIL. Specifically, this means suspending the company's in-kind payments totaling 4 million barrels of oil . According to one of the agency's sources in the Iraqi oil industry, LUKOIL will completely withdraw from the project if the force majeure circumstances are not resolved within six months. Another source clarified that the company has terminated employment with all foreign employees who are not Russian citizens.

This week, the Eco Iraq Observatory proposed five potential solutions for Iraqi authorities to ensure LUKOIL's continued operations and avoid direct violation of US sanctions, Iraqi News reports.

Offers include:

• the creation of third-party companies in neutral countries such as the UAE, China , or Turkey to continue operations under different legal entities; the organization explained that such a mechanism was used by Iranian companies to export oil to Asia without violating sanctions;
• making payments to Russian companies in currencies other than the dollar, such as rubles or yuan, through banks that are not under US jurisdiction or control;
• the creation of joint Iraqi-Russian service companies registered in Iraq, which will allow Russian companies to act solely as technical consultants or service providers, “thereby reducing direct exposure to sanctions”;
• negotiating with the US or Europe for exemptions for companies, citing previous precedents such as the exemption for Iraq's import of Iranian gas, as well as "other examples related to the purchase of Russian oil by India and Egypt";
• attracting Chinese or Indian companies as financial or administrative partners.

The Eco Iraq Observatory also warned of a budget deficit in Iraq due to the country's dependence on oil revenues. According to the organization's estimates, monthly government spending reached approximately 11.5 trillion dinars ($114.1 billion), while revenues did not exceed 10.5 trillion ($104.2 billion). Oil sales in August reached $7.1 billion, while exports amounted to $104.7 million, with the priceOil is $65 per barrel. Monthly oil revenues reach approximately 9.3 trillion dinars ($92.3 billion), while non-oil revenues do not exceed 2 trillion ($19.8 billion).

In late October, the US imposed sanctions against Rosneft and LUKOIL, citing Russia's "lack of serious interest in the peace process." More than 30 of the companies' subsidiaries were also sanctioned. Washington gave them a month to wind down their operations, a deadline that expires on November 21.

This week, Reuters, citing sources, reported that LUKOIL asked the US Treasury Department to extend the deadline for completing its operations. Following the sanctions, the company announced its intention to sell its foreign assets. Oil trader Gunvor was a potential buyer, but the deal fell through after Washington signaled its opposition. The United States ultimately allowed transactions related to the sale of LUKOIL's foreign assets and the servicing of the company's foreign nuclear power plants until December 13. LUKOIL announced that it is in talks with several potential buyers of its foreign assets.

Russian presidential press secretary Dmitry Peskov stated that all legitimate interests of a major company like LUKOIL "must be respected from the standpoint of international and economic relations." "Violations in this area are unacceptable, and they harm the global trade regime. It is a very large player in the global market," he said.

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