Lukoil Operations in Iran

Overview
Lukoil first began operations in Iran in 2003. It entered the Anaran onshore block in 2003 before a significant discovery was made in 2005. In a corporate report from 2010, on the termination of its operation in Anaran, Lukoil said "the Group has written down to nil all its capitalized expenditures in relation to this project and recognized an impairment loss of 63 million US dollars."

Impact of Sanctions
On 15 September 2010, Lukoil made clear its position on Iran in a public press release. In response to a letter sent by two congressmen to the US president that Lukoil was violating sanctions against Iran, the following statement was released. : “The information published by several mass media claiming that Lukoil engaged in sales of petroleum products to Iran in violation of the United States sanctions subsequent to enactment and implementation of the Comprehensive Iran Sanctions Accountability and Divestment Act of July 1, 2010 (CISADA) is erroneous.”

Lukoil, in an open letter to the US congressmen behind the allegation, reiterated that it had “not invested in Iran for many years and the Company’s commercial involvement with Iran has steadily and substantially diminished in recent years in all respects. In the internal review of the international activities of its affiliates, Lukoil has found that none of its companies involved in trading operations has made sales or shipments of gasoline or other refined petroleum products to Iran since April of 2010, some months prior to the implementation of the refined petroleum sanctions restrictions included in CISADA”.

According to Lukoil's official website, in April of 2010, "a final sale of gasoline to Iran was completed under a preexisting supply contract by Lukoil’s trading affiliate LITASCO. The absence of Lukoil sales of refined petroleum products to Iran since April of this year is consistent with the general rules of the international energy market, in respect of sanctions on Iran".

= References =