It has been widely reported that Lukoil, Russia's second largest oil company, has commenced arbitration proceedings in the London Court of International Arbitration (LCIA) against China's Sinopec over an uncompleted $1.2 billion deal.

The parties had entered into a sale-purchase agreement whereby Lukoil would sell to Sinopec 50% of a company involved in various Kazakh hydrocarbon production projects, Caspian Investment Resources Ltd. It is reported that Lukoil considers Sinopec in breach of contract over the uncompleted deal.