Iraq: How Iraq’s Oil Sector Is Emerging as Battleground for Russia, US

Jan 21, 2026 | Mohanad Faris
Amwaj.media
View Original

Upending dynamics in Iraq’s energy sector, Baghdad has announced that it is nationalizing the West Qurna-2 oil field following the exit of the site’s Russian operator. Declared on Jan. 8, the move comes in the wake of Washington’s Oct. 2025 decision to target Russian energy giants Lukoil and Rosneft, firms with significant stakes in Iraq. The retreat severely undermines Russia’s economic foothold in the country, with American companies now poised to potentially fill the vacuum.

The dramatic shift has given rise to speculation that an Iraqi pivot to the west is underway, and that Russian influence is on the ropes. Yet, Lukoil’s exit from West Qurna-2 has also been followed by seemingly cordial meetings between top Iraqi and Russian officials promising boosted bilateral investment. This suggests that despite recent setbacks, both Baghdad and Moscow aim at a strategic recalibration in their engagement amid rapidly changing geopolitical dynamics.