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On Thursday, Lebanon's Prime Minister announced that Iraq had signed an agreement to supply fuel to the country for another year.
According to Lebanon's Prime Minister, Iraq's government has signed an agreement to renew a one-year deal to supply fuel to Lebanon to operate the country's power plants. Iraq agreed to an exchange of in-kind services.
In July 2021, Iraq signed an agreement to provide Lebanon with one million tonnes of fuel oil to help operate the country's power system. It currently faces power cuts up to 23 hours a day during an unprecedented economic crisis.
"The Iraqi government, headed by Mr. Mustafa al-Kadhemi, approved in a meeting today... to extend the supply of fuel to Lebanon... for a period of one year, under the same conditions as before," said in a statement, the Lebanese Prime Minister Najib Mikati's office.
Lebanon's power plants have depended on the deal of fuel supply with Iraq for the past few years to provide the country with one or two hours of electricity per day. Lebanese people depend on expensive generators for power the rest of the time.
As the Lebanese power station cannot use the Iraqi oil directly, Beirut will continue purchasing compatible fuel from other providers who accept Iraqi oil in exchange.
Last year's deal was accountable for 300-400 million dollars by that time, according to the declarations of Raymond Ghajar, the Energy minister. As fuel prices have spiked in the global market, the deal has rocketed to 570 million dollars, said current Lebanon's Energy Minister Walid Fayad.
Fayad said that an Iraqi ministerial delegation is expected to visit Beirut soon to discuss the in-kind services Baghdad wants in return for the fuel.