Lebanon Requests Exemption from $1 Billion Debt to Iraq

The newspaper "Nidaa al-Watan" reported that there are efforts to request Lebanon's exemption from $1.1 billion owed to Iraq as payment for a previous oil agreement, which is facing strong opposition from influential Iraqi parties. Relevant sources confirmed that the amount has not been paid to date, as per the agreement signed in July 2021, which stipulated that Lebanon would pay for shipments in Lebanese pounds according to the exchange rate for services provided to Iraqis. The sources noted that there is talk in restricted circles about the request for exemption, despite a new agreement set to take effect in the next two months for Lebanon to receive an additional 1.5 million metric tons of black oil. This will follow the previously applied mechanism, whereby there will be a swap involving gas oil and/or fuel oil of both types (A) and (B) for the benefit of the Electricité du Liban, providing power for four hours daily.