Western sanctions raise hurdles for Russia in Iraq

Russian companies face challenges with payments and reluctance from commercial partners in Iraq following the invasion of Ukraine.
A construction crew builds the KRG export pipeline, which links to the Iraq-Turkey Pipeline (ITP) at Feyshkabour, on April 7, 2013. Russian firm Rosneft subsequently took a 60 percent stake in the pipeline. (PATRICK OSGOOD/Iraq Oil Report)

BAGHDAD/SULAIMANIYA - Western sanctions are creating new challenges for Russia in Iraq, according to several industry officials, who said Russian companies have had trouble making and receiving payments and faced hesitancy from commercial partners.

Despite the new difficulties, however, Russia's invasion of Ukraine has not yet caused major disruptions to Iraq's oil industry. Iraqi leaders have shied away from criticizing Russian President Vladimir Putin's decision to go to war, and neither the federal government nor the semi-autonomous Kurdistan region are expected to take any action against Russian companies, which operate a handful of key oil and gas projects throughout the country.

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