Middle East

Iraq extends fuel supply deal to Lebanon for another year – Middle East Monitor

Iraq has agreed to renew a one-year contract to fuel Lebanon’s power plants as Beirut battles what the World Bank says. worst economic crisis From the 1850s. In return, Baghdad will receive in-kind services, which will be agreed when an Iraqi ministerial delegation visits Lebanon soon.

“The Iraqi government, led by Mr. Mustafa Al-Kademi, has approved at today’s meeting … the extension of fuel supplies to Lebanon … on the same terms as before … for one year,” Lebanese Prime Minister Najib Mikati said in his office. said. in an official statement.

Iraq is agreement In July 2021, as the Mediterranean nation grapples with blackouts of up to 23 hours a day amid an unprecedented economic crisis, cash-strapped Lebanon will be offered $1 million in exchange for services, including health care, to Iraqi citizens. proposed to provide tons of fuel.

World Bank: Lebanon’s crisis is one of the world’s three worst crises

The deal is the only thing that will prevent a complete blackout for Lebanon’s impoverished population. Over the past year, Lebanon’s power plants have relied on contracts with Iraq to produce one to two hours of electricity per day. Residents of impoverished countries rely heavily on expensive home generators for electricity the rest of the time.

The deal was intended to alleviate Lebanon’s severe power shortage. Last summer, the government failed to subsidize fuel imports, reaching critical levels. Then, when Lebanon removed these subsidies, domestic fuel prices soared. Russia’s invasion of Ukraine further pushed prices up.

When the 2021 contract was signed, it was worth between $300 million and $400 million, said then-Energy Minister Raymond Gajar. , worth an estimated $570 million.

Lebanon’s Energy Minister Waleed Fayyad is reportedly planning to visit Beirut soon with an Iraqi ministerial delegation to agree on the in-kind services Baghdad wants in exchange for fuel.

Lebanon Goes Bankrupt: Deputy Prime Minister

https://www.middleeastmonitor.com/20220812-iraq-extends-deal-to-supply-fuel-to-lebanon-for-another-year/ Iraq extends fuel supply deal to Lebanon for another year – Middle East Monitor

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