While Iraq collapses under the leadership of the regressive marja’iyya in Najaf and the corrupt clique in the so-called Coordination Framework, driven by the Iranian Safavid ogre choking Iraq, the Jaafari Shiite militias loyal to Iran are killing and terrorizing the Iraqi people, slowly starving and brutalizing them under the guise of ignorance, backward Shi’ism, and allegiance to Ahl al-Bayt. This allegiance serves as a distraction for the Iraqis, allowing these hyenas to feed on their blood, extort their money, and plunder their resources. These predators continuously plot and scheme to sell their country to Iran and its Jaafari Twelver followers. The Revolutionary Guards have instructed their militias to tighten their grip on oil fields, establish networks for smuggling, money laundering, and producing low-quality oil derivatives and drug processing plants, drowning Iraq in the darkness of poverty, disease, hunger, unemployment, crime, and corruption, ensuring its downfall for a thousand years. The agreement to export heavy fuel oil to Lebanon, which the Lebanese government aims to renew for another three years amid criticism questioning its economic benefits for Iraq, is seen as a means of supporting Hezbollah and its government in Lebanon, which faces significant political and economic challenges. According to the National Emergency Plan for the Electricity Sector in Lebanon, prepared by the Ministry of Energy and the state-owned Electricité du Liban, the company intends to increase the deal with Iraq to $772 million annually to boost production capacity from 4 hours daily to 8 hours daily by 2028. The Iraqi government does not disclose the revenue details from exporting oil to Lebanon under the agreement that the Coordination Framework government, headed by Mohammed Shia’ Al-Sudani, decided to extend for another year until October 2024, with an increase in oil quantities from 1.5 million to 2 million tons to operate Lebanese power plants after processing the Iraqi oil to suit those plants. According to the Al-Sudani government’s decision, the extension of the agreement, first agreed upon in July 2021, did not clarify the part concerning what Iraq would receive in return for oil in terms of services and goods, especially since the current year’s budget did not note any revenues or references to these benefits. Unlike the oil agreement with Jordan, neither the Iraqi Ministry of Oil nor the Iraqi Oil Marketing Company (SOMO) provides clarifications regarding the returns from the oil agreement with Lebanon. A senior official in the Ministry of Oil confirmed that Iraq records the oil amounts in dollars for Lebanon, which should be offset by Iraq receiving medical, agricultural, and other commercial products. However, none of these assets have yet been documented as having entered Iraq. The agreement signed in 2021 is of a political rather than commercial nature. Adding the clause about Iraq receiving health, agricultural, and other services was not serious. Paying for the exported oil to Lebanon at the current global price would mean that Lebanon would need to provide 20 years of services and agricultural products for three years of oil. The agreement has previously been mired in scandal. In September last year, sources revealed that a shipment of pomegranates as part of this agreement was filled with large quantities of Captagon pills, with Hezbollah allegedly involved. Former Iraqi diplomat and political science professor Ghazi Faisal believes that the fuel oil agreement with Lebanon is political, with no economic benefit for Iraq. It was part of the political strategies of certain Iraqi factions working within the so-called Axis of Resistance. Faisal asserts that this agreement came under significant pressure from influential political and possibly armed factions on the previous government, pushing it to sign this contract. The current government, known for its backers, naturally renewed the contract and increased the quantity, with no real economic benefit for Iraq.
Faisal emphasizes that oil and its derivatives are national resources and should not be tampered with under any pretext, as the fuel oil sent to Lebanon is worth millions, which could benefit the Iraqi people suffering from significant deficiencies in various services, health, and education.
Faisal describes this barter as “gifts” that could provide eight additional hours of electricity. He continues, “Initially, it appears to be oil-for-goods deals, but practically, Lebanon cannot send enough agricultural and industrial products to Iraq to match the value of the fuel oil.”Oil expert Kovind Sherwani notes that since the Beirut port explosion, Iraq has provided substantial food and fuel aid to Lebanon without compensation. This aid was later organized into a barter agreement, where Iraq would send heavy fuel oil used to run power plants in exchange for food from Lebanon.
Sherwani added that the pricing of the oil products is unclear, whether they follow global market rates or are preferential prices, as Lebanon seeks preferential rates due to its economic situation. He stresses that in such agreements, there should be no room for courtesy or economic barter, prioritizing the country’s higher interests, especially since the 2023 and 2024 budgets show a significant deficit of about $49 billion. Therefore, reducing such grants or preferential pricing, which depletes the public treasury, is necessary. Iraq has not received payment for its exported oil to Lebanon, continuing to trust the initial financial guarantees provided via an unconfirmed letter of credit opened at the Central Bank of Lebanon for the Central Bank of Iraq, on behalf of the Iraqi Oil Marketing Company SOMO, turning it into a bank deposit. This account requires Lebanon to fulfill its obligations under the contract, thus paying for the oil with services and goods, with the Central Bank of Lebanon ensuring payments to those who provide them in Lebanese currency. To avoid doubts about Lebanon’s intentions to evade paying Iraq, the first practical steps were taken in implementing the “Iraqi Oil for Lebanese Products and Services Exchange Program,” through a decision in November 2023, assigning the Investment Development Authority of Lebanon (IDAL) to create a platform to showcase and request Lebanese products. The Lebanese side charged the Al-Sudani government substantial amounts to establish the electronic platform for showcasing products that Iraq is supposed to import in exchange for fuel oil, as stipulated in the contract between the two countries. The platform, however, lists broad service categories, such as medical and tourism terms, without delving into details, according to Lebanese media. A well-informed source stated that the Lebanese government charged its Iraqi counterpart $2 million for creating the platform, an exaggerated amount far exceeding the cost of any website or app. The source added that this is a form of fraud by both sides, as such a platform will likely go unused because Iraqi traders or importers prefer to travel and inspect the goods they wish to purchase, especially since Lebanon is not a distant country. Additionally, Lebanon does not have large industries like China or the United States, offering a wide range of choices to importers. The source also mentioned that the Lebanese government is not serious about paying Iraq’s dues, despite nearly two years of the agreement and Iraq sending fuel oil and crude oil to Lebanon. He pointed out that Beirut buys energy from other countries in cash, indicating it has money in its treasury, raising questions about why it doesn’t pay Iraq from those funds, despite Iraq’s annual commitment to the contract. The source speculates that the platform’s expected failure to settle Iraq’s dues for fuel oil is due to Lebanese traders’ lack of trust in the Central Bank of Lebanon, directly linked to the platform. Economic affairs specialist Hummam Al-Shamaa states that the agreement between Iraq and Lebanon regarding fuel oil has no real economic benefit for Iraq, and the contract is merely a form of assistance from Iraq to Lebanon amidst its internal crises. Regarding the trust issue between Lebanese traders and their central bank, Al-Shamaa notes that Iraq is not concerned with this issue, as it deals with Lebanon as a state. Any agreement between the two countries is according to international and UN laws, which are binding on both parties. Therefore, Lebanon is obligated to fulfill the agreed terms of sending foodstuffs and medical teams. Lebanon is currently experiencing a severe economic downturn, having declared bankruptcy over three years ago. This led to the lira’s collapse to record levels, halting most commercial transactions and leaving the state unable to pay the funds deposited by traders and investors in its banks.