Uzbekistan Continues Cooperation with Lukoil in Line with US Sanctions

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan continues its cooperation with the Russian oil and gas company Lukoil fully in compliance with international sanctions regimes. This was stated by Minister of Energy Jurabek Mirzamahmudov on 11 December during a session of the Legislative Chamber of the Oliy Majlis.

Deputy Nodirbek Tilavoldiev asked how US sanctions against Lukoil might affect the company’s projects in Uzbekistan. The Minister emphasized that the company’s activities in the country continue uninterrupted, strictly within the framework of international law and existing sanctions. “We work on this issue in constant coordination with the US Department of the Treasury’s OFAC, which is responsible for implementing sanctions,” he noted.

Mirzamahmudov reported that the Ministry of Energy recently received a letter confirming the extension of the general license for Lukoil’s foreign asset sales until 17 January 2026, allowing the company to continue operations in Uzbekistan fully compliant with all requirements and ongoing consultations.

International lawyers are involved in developing a legal solution, working with Lukoil to find the optimal approach that safeguards Uzbekistan’s national interests and adheres to international law.

The Minister highlighted that direct dialogue with the US has strengthened following two meetings between Presidents Shavkat Mirziyoyev and Donald Trump, creating favorable conditions for resolving cooperation issues.

As a reminder, on 22 October 2025, the US imposed sanctions on Rosneft and Lukoil. Following this, Lukoil announced plans to sell its foreign assets. Oil trader Gunvor offered to acquire Lukoil’s overseas business, but the deal was not approved by the US Treasury due to Gunvor’s previous ties with Russia.

Currently, Exxon Mobil and Chevron are considering purchasing Lukoil’s stake in the West Qurna-2 field in Iraq, one of the company’s most valuable assets. Among potential investors is also Abu Dhabi National Oil Company (ADNOC), expressing interest in Lukoil’s gas fields in Uzbekistan.

The Uzbek government originally signed production-sharing agreements with Lukoil in 2004 for the Kandym-Khauzak-Shady project in Bukhara (35-year term, extended in 2014 by 7 years until 2046) and the South-West Gissar project in Kashkadarya (effective from 2007 for 36 years until 2043).

The company’s key asset in Uzbekistan remains the Kandym gas processing complex, with a capacity of 8.1 billion cubic meters per year and total investments of US$3.5 billion.