Kazakhstan assessing Lukoil sanctions impact, Baku monitoring situation closely

Kazakhstan is working with international consultants to determine how state energy company KazMunayGas can adapt to Western sanctions imposed on Russia’s Lukoil, Samruk-Kazyna Chairman Aidar Ryskulov told reporters in Astana.

“There is an extensive and complex process underway with international advisers to assess how KazMunayGas should act in the current situation. Lukoil has major projects in Kazakhstan, and the issue is difficult and multifaceted. For Kazakhstan and KazMunayGas, Lukoil has always been a reliable partner,” Ryskulov said.

He added that a decision on future cooperation, taking into account the sanctions regime, would be made “soon — within a few weeks.”

The situation is also being closely watched in Azerbaijan. Lukoil Azerbaijan owns the country’s second-largest fuel retail network and holds a 10% stake in the Azeri–Chirag–Guneshli oil project and 19.99% in the Shah Deniz gas field. While the company’s local subsidiary has not been sanctioned, restrictions could complicate its financial operations and cross-border payments.

Ilham Shaban, head of the Oil Research Center, told Modern.az that a possible state acquisition of Lukoil Azerbaijan “is not currently on the agenda.”

“The U.S. sanctions signed on October 22 will take effect on November 21. Putin said Russia is used to sanctions and knows how to bypass them. Trump replied that those were Europe’s sanctions — ‘now let’s see what effect mine will have.’ For now, Lukoil’s largest overseas project is in Iraq, followed by Kazakhstan, Uzbekistan and Azerbaijan. Exiting these projects or imposing new sanctions is not currently under discussion,” Shaban said.

N.Tebrizli