U.S. sanctions on major Russian oil companies created serious disruptions in Iraq’s southern fields. However, the Kurdistan Region remains stable. Iraqi lawmaker Sabah Subhi said the restrictions affected about nine percent of Iraq’s total oil output. He said the sanctions hit the giant West Qurna-2 field. This field produces around 450,000 barrels per day. It depends heavily on Russian operators. Because of this reliance, the sanctions created rapid instability across the southern region.
Subhi explained the situation in an interview. He said the measures form part of Washington’s plan to increase pressure on Moscow. The sanctions target any company where Russian ownership exceeds 50 percent. Therefore, West Qurna-2 faced an immediate impact. These disruptions threaten Iraq’s national revenue. The country relies almost entirely on oil income. Subhi said Iraq needs to react quickly to avoid further losses.
He said Baghdad plans a fast transition. The government wants a local company to take control of operations. It also wants to select a new international operator very soon. He warned that any delay will damage Iraq’s overall income. He said maintaining output is a top priority. The government views this step as a direct economic necessity. The situation highlights the serious effect of Iraq oil sanctions on the national budget.
Subhi also discussed the Kurdistan Region. He said the Region faces no risk from these sanctions. Russian companies hold less than a 50 percent share in Kurdish oil operations. Because of this structure, the restrictions do not apply. Kurdish fields continue normal production. Export operations also remain stable.
Rosneft confirmed this position. The company holds a stake in the KRG export pipeline. Rosneft said exports to Turkey’s Ceyhan port will continue. The company reduced its ownership share in Kurdistan earlier this year. That move placed Kurdish operations outside the scope of U.S. restrictions. Therefore, Kurdish oil production faces no disruption from Iraq oil sanctions.
Subhi also spoke about the wider geopolitical context. He said the sanctions show growing competition between major powers. Washington wants to limit Russian and Chinese influence in the Middle East. He said the United States plans to expand its role in Iraq through American companies. He said this strategy aligns with Washington’s broader approach to energy security.
The U.S. recently announced sanctions on Rosneft and Lukoil. The measures aim to pressure President Vladimir Putin during the war in Ukraine. They take effect early next month. As Iraq manages the fallout, Baghdad faces two major challenges. It must protect national oil revenue. It must also navigate rising competition between global powers. The stability of the Kurdistan Region offers one small advantage. The rest of Iraq must adjust its strategy to withstand the expanding impact of Iraq oil sanctions.
