A Russian company declares "force majeure" on Iraqi oil.

Russian oil company Lukoil has declared force majeure on oil shipments from the giant West Qurna-2 field in Iraq.

Bloomberg reported that Lukoil declared force majeure on oil shipments from the West Qurna-2 field in Iraq after being subjected to US sanctions.

This move indicates that the sanctions imposed on Russia's second-largest oil producer are beginning to affect its international operations. The United States announced sanctions against the company last month as part of President Donald Trump's efforts to increase pressure on Moscow to end its war in Ukraine.

The force majeure declaration allows Lukoil to default on its contractual obligations, but it does not necessarily mean that shipments from the West Qurna-2 field will cease. The company owns a 75% stake in the field, which produced more than 480,000 barrels per day in April, according to Interfax.