Rosneft cut its ownership in the Kurdistan Pipeline Company (KPC) to protect the Kurdistan pipeline project from new U.S. sanctions. A senior official from the Kurdistan Regional Government confirmed the move. The decision followed several intense talks between Rosneft and the KRG. These talks focused on finding a direct solution that keeps the pipeline operating without legal risks.
Therefore, the United States announced new sanctions last month. These sanctions targeted Rosneft and Lukoil. Both companies represent the two biggest oil firms in Russia. Washington introduced the measures to increase pressure on President Vladimir Putin during the ongoing war in Ukraine. The sanctions also hit any company that holds more than 50% ownership by Rosneft or Lukoil. Because of this rule, KPC faced immediate exposure. The Kurdistan pipeline project risked disruptions.
Moreover, KPC manages the main oil pipeline in the Kurdistan Region. The pipeline moves crude from northern Iraq toward the border. It then links the Kurdish export line with the Iraq–Turkey pipeline. This route holds great importance for the region’s oil economy. It also supports the broader energy sector in Iraq.
Additionally, a Kurdistan natural resources official explained the situation. He said Rosneft chose to reduce its ownership after direct consultations with the KRG. He added that the company needed to protect the pipeline and avoid sanctions. Rosneft then completed the sale of part of its share to a new investor.
Two informed sources told Reuters that the buyer is DEX Capital. The company is based in the United Arab Emirates. The sources explained that DEX Capital acquired an 11% stake. This deal brought Rosneft’s ownership below the 50% threshold. Therefore, the adjustment removed the risk of sanctions for KPC and the Kurdistan pipeline project.
Rosneft first entered the project in 2017. The company secured a 60% share during that year. The Kurdish KAR Group kept the remaining 40%. At the time, inside sources said Rosneft planned a major long-term investment. They estimated the value of the project at around $1.8 billion. That investment aimed to expand and modernize the export infrastructure in the region.
Today’s change reflects a strategic shift. Rosneft wants to maintain its presence in Kurdistan. Yet it must also respond to global political pressure. The stake reduction accomplishes both goals. It keeps the pipeline stable. Rosneft ensures continued export operations. It also limits the impact of U.S. sanctions on the region’s oil network. This development marks a significant moment for the Kurdistan energy sector and its future stability.
 to protect the Kurdistan pipeline project from new U.S. sanctions. A senior official from the Kurdistan){kind=link}