Lebanese PM to visit Iraq following fuel crisis
Shafaq News/ Lebanese Prime Minister Najib Mikati is scheduled to visit Iraq, responding to an invitation from his Iraqi counterpart Mohammed Shia Al-Sudani.
According to Lebanon's Al-Joumhouria newspaper, government sources said that Mikati will be accompanied by a ministerial delegation, including Energy Minister Walid Fayyad, Economy Minister Amin Salam, Agriculture Minister Abbas Hajj Hassan, and Industry Minister George Bouchikian, along with several advisors.
Talks are expected to focus on the Iraqi fuel agreement.
In August 2022, the Iraqi Cabinet approved the extension of the agreement to sell fuel oil to Lebanon, stating that this decision comes in response to the difficult circumstances faced by the Lebanese people.
The Iraq-Lebanon energy exchange agreement stipulates that Iraq provides Lebanon, which is experiencing its worst economic crisis, with heavy fuel oil in exchange for "services and goods" that Iraq will receive from Lebanon.
However, Fayyad, this July, announced that Iraq's State Oil Marketing Organization (SOMO) had suspended the unloading of fuel shipments to Lebanon due to non-payment of dues for the second consecutive year.
Fayyad stated that "for the fifth month in a row, the Central Bank of Lebanon has not transferred the payments for the fuel shipments to the Iraqi government's account. Consequently, Lebanon is financially exposed to Iraq, as the dues have not been paid for the second year in a row."
Without the Iraqi fuel oil shipment, Lebanon would face a complete blackout within three days.
Notably, the Iraqi government agreed this July to unload a shipment of fuel oil despite Beirut's failure to settle its outstanding financial dues to Baghdad.
This decision followed a phone call between Mikati and Al-Sudani. Previously, Minister Fayyad had multiple communications with Iraqi Oil Minister Hayan Abdul Ghani, the Iraqi government, and the Iraqi Embassy in Lebanon to address the fuel oil payment crisis and avoid a complete blackout in Lebanon.
