Russian company pulls out of Iran due to US sanctions

Lukoil, Russia's largest private oil company, has stopped all activities in Iran in line with US sanctions against Iran.

Lukoil and the Norwegian Consortium, Norsk Hydro were in charge of the oil field discovery at the Anaran Exploration Block in Iran.

Novosti reports that Lukoil has announced that due to the US sanctions their activities in the discovery bloc could cost the company $63 million.

Earlier, a senior Lukoil executive had announced that proceeding with the Anaran Exploration Block under US sanctions is impossible.

The US has assumed strict sanctions against international companies that deal with Iran in the energy sector. According to these sanctions, all US and international companies that invest more than $20 million in Iran’s oil and gas industries are subject to heavy fines.

The sanctions seem to be taking effect as Royal Dutch Shell announced earlier that they will no longer sell petrol to Iran, and two weeks ago, Vitol, Glencore and Trafigura also stopped their petrol exports to Iran.