US extends deadline for Lukoil asset sale; Iraq among the most prominent assets offered

The U.S. Treasury Department has extended the deadline for energy companies to finalize deals to purchase Lukoil’s foreign assets to May 30, 2026, instead of May 1, in a move that reflects the continuing complications associated with sanctions imposed on the Russian energy sector.

The decision comes amid US pressure on Moscow over the war in Ukraine, where sanctions have forced Lukoil, Russia’s second-largest oil producer, to abandon its international portfolio, estimated at around $22 billion.

These assets include projects, oil fields, refineries and fuel stations distributed across several countries, including Iraq, which puts the Iraqi market within the circle of interest in any potential deals, especially with the company having existing investments within the country.

According to the data, the sale attracted the interest of more than 12 buyers, including ExxonMobil, amid strict US conditions stipulating that the Russian company would not receive any direct payments, and that the proceeds would be deposited into frozen accounts subject to US control.

This is the fifth such extension since the sanctions were imposed last October, reflecting the complexity of the negotiations and the sensitivity of the assets at stake, particularly those linked to strategic markets such as Iraq, which could be affected by any changes in the ownership or operation of these oil projects.

The Lukoil West Qurna 2 oil field is one of the largest oil fields in Iraq, located in the southern province of Basra. It is developed and operated by the Russian company Lukoil under a contract with the Iraqi Ministry of Oil. Development of the field began after 2010, and actual production commenced in 2014.

It is considered one of the world’s giant oil fields with its large reserves and production of between 400,000 and 470,000 barrels per day, making it one of the most important sources of oil income for Iraq and contributing significantly to boosting its oil exports.

Shafaq.com

“A heavy legacy”… What challenges does the Iraqi prime minister-designate face?

Since 2003, Iraq has witnessed profound political transformations that have directly affected the nature of the transfer of executive power, with a number of figures succeeding each other as Prime Minister within different internal and external contexts.

This path began with Iyad Allawi, who led the interim government after the fall of the previous regime, then Ibrahim al-Jaafari in a transitional phase characterized by institution-building, followed by Nouri al-Maliki, who ruled for two terms and whose term witnessed the consolidation of a system of governance based on political balances.

Then came Haider al-Abadi in a complex security situation during the war on ISIS, then Adel Abdul Mahdi, who ended his term under pressure from the October protests, then Mustafa al-Kadhimi, who took over managing a sensitive transitional phase, and finally Mohammed Shia al-Sudani, who came as a result of the 2021 elections.

This sequence reflects a political pattern based on compromises and settlements, where governments were often formed as interim solutions for managing crises rather than as long-term reform projects.

Within this context, the nomination of Ali al-Zaidi comes as an extension of this path, burdened with a heavy political legacy that requires him to deal with an intricate system of interests and balances.

Al-Zaydi’s nomination

The nomination of Ali al-Zaidi is presented in political discourse as a step that bears different features from the pattern that has governed the political process since 2003, as the focus is on him being outside the traditional framework of some of the forces that have run the government during the past years.

In this context, Fahd al-Jubouri, a leader in the Wisdom Movement led by Ammar al-Hakim, told Shafaq News Agency that the issue of choosing the new prime minister-designate is outside the general context, as it is far removed from the political system that has ruled since 2003, and it is considered the beginning of a new political phase away from the traditional forces, and thus it will be the beginning of a new kind of political work in Iraq with a new prime minister.

This proposal reflects an attempt to give a new character to the selection process, but the general context in which the nomination took place, and the forces that supported it, indicate the continuation of the same mechanisms of political consensus.

Thus, the discourse of change becomes linked to the ability to implement it actually, not merely to a political description, especially in light of the continued use of the same tools that governed the formation of previous governments.

political support

Al-Zaydi’s nomination also enjoys the support of influential political forces, but this support is accompanied by clear expectations regarding the nature of the upcoming government performance.

In this regard, Ali Al-Ahmad, a member of the Progress Party headed by Mohammed Rikan Al-Halbousi, affirms that the party, as the largest Sunni component on both the political and social levels, supports the option that emerged from the coordination framework in choosing the Prime Minister.

Confirming what Shafaq News published, the “Reconstruction and Development” bloc aspires to five ministerial portfolios in the “Al-Zaidi” government.

Abbas Ahyal, a member of the “Reconstruction and Development” coalition led by (outgoing) Prime Minister Mohammed Shia al-Sudani, stated on Thursday that the coalition is entitled to no less than five ministries in the next Iraqi government, given that it is the largest bloc in the results of the last legislative elections held in the country at the end of 2025.

Regarding the deadline given to Prime Minister-designate Ali al-Zidi, Ahial explained to Shafaq News Agency that the Iraqi constitution has set 30 days for al-Zidi to form his cabinet, starting from the date of his designation. He expects the designated prime minister to present the government program and cabinet for a vote and to gain confidence within the House of Representatives before the legal deadline expires.

He pointed out that there are intensive meetings and gatherings of political blocs with the aim of reaching an understanding and agreement on the cabinet, stressing that each bloc seeks to obtain gains commensurate with its electoral size.

Regarding the aspirations of the “Reconstruction and Development” coalition, the MP said that the coalition is the largest parliamentary bloc in terms of the number of parliamentary seats, and will obtain no less than five portfolios in the next government, one of which is sovereign, stressing that matters will lead to the distribution of ministerial portfolios according to the number of seats held by each bloc.

The statement by the MP from the “Reconstruction and Development” bloc coincides with what an informed political source revealed yesterday, Wednesday, to Shafaq News Agency about the initial map for the distribution of ministerial portfolios in the government of Prime Minister-designate Ali al-Zidi, indicating that the Reconstruction and Development Coalition, led by outgoing Prime Minister Mohammed Shia al-Sudani, is heading towards obtaining the largest share within the new cabinet, with five ministries, while the share of the “Sadiqun” movement, led by the Secretary-General of Asa’ib Ahl al-Haq, Qais al-Khazali, is increasing in executive positions.

According to the source, the initial distribution of ministerial portfolios is as follows: the Reconstruction and Development Coalition: 5 ministries (including Finance) + Deputy Prime Minister; the State of Law Coalition: Ministry of Oil + a service ministry; and

Badr Organization: Ministry of Interior, Wisdom Movement: Ministry of Planning, Sadiqun Movement: Ministries of Labor and Industry + Deputy Prime Minister, Kurdistan Democratic Party: Foreign Affairs and Justice, Progress Party: Ministry of Higher Education, Azm Alliance: Ministry of Defense.

Shafaq.com

The Parliamentary Finance Committee vows to stop the “farce” of the 2025 budget schedules: a clear legal violation, and we will not vote for them.

On Thursday, MP Bassem Al-Gharabi, a member of the parliamentary finance committee, strongly criticized the Ministry of Finance for sending the 2025 budget schedules in April of 2026, considering this a “clear violation” of the law and a “clear breach” of the binding financial deadlines.

Shafaq News Agency publishes the document issued by the Ministry of Finance/Budget Department on April 28, 2026, and signed by Minister Taif Sami, which shows the referral of the general budget tables for the year 2025 and the deficit financing table to the General Secretariat of the Council of Ministers for the purpose of sending them to the House of Representatives for approval.

Al-Gharabi explained in a statement received by Shafaq News Agency that Article (77/Second) of the Three-Year Budget Law No. 13 of 2023 requires that these schedules be sent before the end of the previous fiscal year (end of 2024), and not after the end of the fiscal year in its entirety.

Al-Gharabi added that “what happened practically means dealing with a completed fiscal year, which is contrary to the principle of annual budgeting stipulated in Federal Financial Management Law No. 6 of 2019, as it is not permissible to exceed the fiscal year or reopen it after it has been closed.”

The member of the Finance Committee stressed that this measure lacks legal basis and disrupts the work of oversight and final accounts, calling on the concerned authorities to clarify the legal basis and determine responsibilities.

Al-Gharabi concluded by saying: “We will put an end to this farce in the management of state funds, and we will not vote on the schedules if they are sent to the council for the purpose of legal cover-ups and evading accountability.”

Shafaq.com

The Central Bank of Iraq is discussing with Azerbaijan the opening of bank branches and the development of electronic payment systems.

On Thursday, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, discussed with the Azerbaijani Ambassador to Baghdad, Eldar Selimov, the development of cooperation, including opening bank branches in both countries and activating electronic payment cards.

The Central Bank said in a statement received by Shafaq News Agency that “Al-Alaq received Salimov, and during the meeting, ways to enhance financial and banking cooperation between Iraq and Azerbaijan were discussed, with a focus on developing mechanisms for bilateral financial transfers, especially those related to the banking sector.”

He added that “both sides expressed their desire to expand the scope of banking cooperation, including the possibility of opening bank branches and strengthening financial partnerships, in a way that serves common interests and supports the movement of economic exchange between the two countries. The two sides also discussed the importance of developing the electronic payment card system in a way that contributes to facilitating the movement of travelers and raising the efficiency of financial operations, stressing the smoothness of transactions and their reaching ideal levels.”

He added that “Salimov extended an official invitation to the Governor of the Central Bank of Iraq to participate in the Islamic Development Bank meetings scheduled to be held in Baku from June 16 to 19, 2026.”

Shafaq.com

Exclusive: Washington makes progress in relations with Baghdad contingent on “dismantling the factions”

A spokesman for the US State Department confirmed on Wednesday that dismantling Iraqi factions is a “key pillar” for making progress in bilateral relations between Baghdad and Washington.

The spokesman told Shafaq News Agency, “The US administration was very clear in its vision of what is required to achieve progress in bilateral relations between Washington and Baghdad.”

He added that “dismantling the pro-Iranian armed factions in Iraq is a fundamental pillar for strengthening the relationship,” explaining: “We continue to stand with the Iraqi people in their aspirations towards the common goals of protecting Iraq’s sovereignty, enhancing its security, and building a prosperous future that brings tangible benefits to both Americans and Iraqis.”

Regarding the financial reward for information about the Secretary-General of Kataib Sayyid al-Shuhada, Hashim Fenian Rahim al-Saraji, known as “Abu Ala al-Walai,” the spokesman explained that the “Rewards for Justice” program issued the reward offer for al-Walai due to his involvement in targeting operations that affected diplomatic and military facilities belonging to the United States.

Informed political sources revealed last Monday that a number of leaders of the Coordination Framework had received messages from the United States expressing its strong displeasure with the participation of the Secretary-General of the Sayyid al-Shuhada Brigades, Abu Ala al-Walai, in the last meeting of the Coordination Framework.

The sources told Shafaq News Agency that “Washington expressed surprise at al-Walai’s participation in a political meeting dedicated to choosing the prime minister, just hours after the US State Department announced a financial reward of up to $10 million for information leading to him .”

She added that “the American message was strongly worded, and included an emphasis that the continued coordination framework’s disregard for the nature of the existing relationship and partnership with Washington may push the American administration to conduct a comprehensive reassessment of the bilateral relationship at various levels, particularly in the security and economic aspects.”

The sources indicated that “the American side hinted at the possibility of not engaging or dealing positively with any new Iraqi government, in the event that the leaders of the factions continue to play a major role among the influential forces in shaping its features or directing its political decisions.”

It is noted that the Coordination Framework nominated Ali al-Zidi on Monday evening to form the new government, and President Nizar Amidi tasked him with forming it.

It is worth noting that the US State Department announced last Friday, through the Rewards for Justice program of the Diplomatic Security Service, a reward of up to $10 million for information about Hashim Finyan Rahim al-Saraji, also known as Abu Ala al-Walai, the leader of the Sayyid al-Shuhada Brigades in Iraq .

The United States had designated Kataib Sayyid al-Shuhada and its leader, al-Sarraj, as Specially Designated Global Terrorists in November 2023, before later listing the group as a Foreign Terrorist Organization in September 2025 .

Shafaq.com

An economist says it’s likely that a spending law and a budget for 2027 will be passed.

Economic expert Dr. Safwan Qusay prefers enacting a special spending law for the remainder of this year and proceeding with the legislation of a budget for next year. Qusay told Al-Maalouma, “The remaining time of this year doesn’t necessitate enacting a budget law. It’s better to proceed with a special law for the remainder of this year and prepare for the 2027 budget.”

He added, “By October 15th of this year, there should be a draft of the government program to be voted on by Parliament according to legal frameworks. There is a possibility of enacting a special law to finance the remaining expenditures during 2026, especially since there are expenditures governed by legal frameworks, such as salaries, food baskets, and ration cards.”

He pointed to the importance of the Ministry of Finance focusing on expenditures governed by laws, utilizing oil revenues and other sources, as well as domestic borrowing, and converting a portion of the letters of credit allocated for investment projects, which have been suspended, into final revenues for the Ministry of Finance to compensate for the shortfall in operational spending.

Almaalomah.me

The Algerian explains the scenario for choosing Al-Zidi for the position of Prime Minister

Abdul Rahman al-Jazaeri, head of the political body of the National Tribal Movement, explained the mechanisms and scenario behind the selection of Ali al-Zaidi for the position of Prime Minister.

Al-Jazaeri told Al-Maalouma, “There is a trend towards independent figures, especially since the religious authority has closed its doors to politicians. Therefore, an independent candidate avoids the quota system and partisanship.”

He added, “The unanimous agreement on al-Zaidi was followed 60 minutes later by his appointment as Prime Minister by the President of the Republic. This confirms that there is a democratic process in Iraq to address the errors and the agreed-upon criteria.”
He explained that “the selection was made after an agreement between the teams of Maliki and Sudani and those who joined them. The selection was made according to an agreement concluded 48 hours prior, after postponing the framework meeting and agreeing on al-Zaidi with all the specifications of the coordinating framework, regardless of the points held by each party and bloc.”

Almaalomah.me

A move to appoint 3 vice presidents, with Maliki at the forefront.

Hashim al-Haboubi, a leader in the National Accord Movement, revealed on Wednesday a serious political move to reinstate the position of Vice President of the Republic and appoint three individuals to these posts. He indicated that the Speaker of Parliament alluded to this move publicly during his speech at the presidential swearing-in ceremony.
Al-Haboubi told Al-Maalomah News Agency, “Current information and leaks confirm the intention to appoint three Vice Presidents, with Nouri al-Maliki, leader of the State of Law Coalition, at the forefront. The other two positions will be allocated to the Sunni component and the Kurdistan Democratic Party.”

He added, “Reviving these positions comes at a time when the duties of the President of the Republic are viewed as largely ceremonial. However, recruiting three Vice Presidents will cost the state treasury enormous sums of money and impose additional burdens.”
Al-Haboubi explained that “the Speaker of Parliament clearly indicated this move during the presidential swearing-in ceremony, which confirms the existence of prior political agreements in this regard.”

Almaalomah.me

The dollar surges in Iran, nearing 180,000 tomans.

Foreign currency prices in Iran’s free market saw a sharp rise on Wednesday, amid a worsening economic crisis and the continued crippling naval blockade of its ports, with the US dollar exceeding 180,000 tomans, marking an increase of nearly 8 percent compared to the previous day.

The jump comes at a time when traders and observers link the decline of the toman to renewed concerns about the repercussions of the war, especially with talk of the fragility of the ceasefire and the possibility of a return to military confrontations, which usually prompts individuals and companies to increase demand for the dollar and gold to hedge against further deterioration.

The exchange rate in Iran is one of the most sensitive indicators of political and security crises, as any external escalation or tightening of sanctions is often quickly reflected in the free market, before its effect is transferred to the prices of imported goods, gold and the cost of living.

Shafaq.com