Iraq "frustrated" with Lebanon over unpaid fuel debts exceeding $1.5 billion
Shafaq News/Iraq has expressed "frustration" with Lebanon over its continuedrefusal to release payments owed for fuel shipments provided to keep Lebanon'spower plants operational, a Lebanese official source told Lebanon Debate.
According tothe source, the Lebanese state ow the Iraqi government more than $1.5 billion.
Earlier inAugust, high-level Lebanese sources revealed that Baghdad had declined to renewan agreement with Beirut under which Iraq supplied fuel to Lebanon in exchangefor services. The decision was driven by financial concerns, particularly theLebanese Central Bank's reluctance to open a new $700 million credit linewithout solid repayment guarantees.
The originalagreement, signed in July 2021, involved the delivery of one million tons of heacyfuel oil to alleviate Lebanon's severe electricity shortage. The first shipmentof 31,000 tons arrived in Lebanon in September 2021.
The energyexchange deal allowed Lebanon, grappling with its worst economic crisis, toreceive heavy fuel oil from Iraq in return for "services and goods."In August 2022, the Iraqi cabinet extended the agreement, citing the Lebanesepopulation's challenging circumstances.
Blackoutshave been a constant issue in Lebanon since the end of its 15-year civil war in1990, with the country heavily reliant on imported fuel. However, the situationhas worsened as the government faces unprecedented financial challenges and isconsidering lifting fuel subsidies.
Lebanon'sstate electricity company (Electricité du Liban) provides no more than fourhours of power daily. Some areas have no electricity, forcing private generatoroperators to become the primary energy suppliers.
