Moscow-based Lukoil spent nearly a decade preparing a major gas project in Romania, but Western sanctions have forced the company out. The Trident field in the Black Sea, with reserves estimated at over 30 bcm of gas and 85% owned by Lukoil, is now out of reach after the drilling contractor canceled the contract citing new UK and US sanctions.
This is significant for the EU, which is seeking alternatives to Russian gas. As sanctions made the contract illegal, Lukoil lost years of work within days. Simultaneously, the company declared force majeure at Iraq's West Qurna-2 oil field. Due to sanctions risks, the Iraqi oil company canceled oil shipments and payments, putting Lukoil's operations there in question.
Other assets in the EU, including fuel station networks and refineries in Bulgaria, Romania, and the Netherlands, as well as extraction operations in the Middle East and Central Asia, are now under threat. Sanctions may cost Lukoil up to 17% of its production. Lukoil shares on the Moscow Exchange have fallen 18.6% since the sanctions were imposed, with nearly $10 billion in lost capitalization.
Bulgaria and Romania are considering nationalizing Lukoil’s assets to ensure energy stability and compliance with sanctions. Having spent decades expanding abroad, Lukoil is now losing key assets in just weeks, and the future of its international empire is uncertain.
