August 21, 2021
Parliament Session Yesterday on Fuel Subsidies
CIA Director Proposes Israeli Withdrawal from Shebaa Farms
Lebanese Security Forces Secure Fuel from Warehouses for Hospitals
Parliament Session Yesterday on Fuel Subsidies
Parliament Speaker Nabih Berri held a session yesterday to respond to Lebanon’s severe fuel shortage. [Reuters] At the request of President Michel Aoun, the parliament was instructed to come to some sort of decision or action regarding fuel subsidies that Central Bank governor Riad Salameh decided to halt last week as the bank runs low on reserves. [Naharnet] Today, Salameh said the government decided to raise fuel import exchange rates from 3,900 pounds to the dollar to 8,000 to the dollar. [Reuters]
RESPONSE
“Three critical decision points are coming to a head this week: the latest attempt to form a government, insolvency of the subsidies program, and the issuance of the IMF Special Drawing Rights, potentially worth more than a billion dollars. Once again the Lebanese politicians face a choice: remain selfish in serving the priorities of their confessionally directed habits, or, wake up and form a reformist government capable of meeting the needs of the people. At a minimum, this would require rejecting the old subsidy prices drain on the budget and agreeing to the World Bank cash card system, to which they can then apply SDR monies to transparently and effectively help those in need.”
-ATFL President Edward M. Gabriel
CIA Director Proposes Israeli Withdrawal from Shebaa Farms
During a recent visit to Lebanon, CIA Director William Burns reportedly proposed to have Israel withdraw from Lebanon’s occupied Shebaa Farms in effort to put an end to the border conflict. The area, situated in the Golan Heights, has been occupied by Israel since 1978 and has long been a source of tension along the southern Lebanon border. [The 961]
RESPONSE
“CIA Director William Burns is no stranger to Lebanon or the region. He knows it intimately and is well versed in the nuances of regional politics. If this initiative is true, it merits serious consideration by the Israelis. ‘Liberating’ Shebaa Farms is one of the false narratives concocted by Hezbollah as part of its ‘resistance’ role in defending Lebanon. Without that, it may have to fall back on other tropes to justify its military presence in the country. And Israel’s new government can take credit for reducing tensions while still controlling the Golan Heights from which it can still monitor activities in the surrounding areas.”
-ATFL Policy Director Jean AbiNader
Lebanese Security Forces Secure Fuel from Warehouses for Hospitals
Amid Lebanon’s crippling fuel shortage, Lebanese security forces seized thousands of liters of fuel from warehouses in Beirut and Zouk Mosbeh and distributed the fuel to hospitals, bakeries, and other private generator owners. [The 961] Later in the week, Hezbollah chief Hassan Nasrallah announced that a ship of Iranian fuel will set sail from Iran to Lebanon. [Reuters]
RESPONSE
“Fuel subsidies, smuggling, sanctions, and supply lines are the dominant themes in Lebanon news this week. The LAF has been recovering caches of fuel from hoarders and smugglers and distributing it to private generator operators, hospitals, and small businesses which serve the people directly. However, large shipments continue to be smuggled to Syria with periodic interceptions by citizens fed up with the ease with which smugglers operate. And now Nasrallah is negotiating on his own with Iran for diesel fuel for power generators and some vehicles, in contravention of sanctions on Iran and on the transshipments supposedly through Syria, which fall under Caesar Act sanctioning. Regrettably, Lebanon has no government willing to develop a sane policy to ensure gasoline and diesel deliveries adequate to the country’s needs.”
-ATFL Policy Director Jean AbiNader
Disclaimer: The views and opinions expressed are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.