Iraq, Lebanon Sign Deal to Swap Fuel Oil for Medical Services

Iraq, Lebanon Sign Deal to Swap Fuel Oil for Medical Services

Iraq will provide Lebanon with one million tons of fuel oil for its power plants in exchange for medical services, under a deal signed on Saturday in Baghdad.

Both countries are suffering from major energy crises, with electricity shortages impacting hospitals.

A statement from the Iraqi authorities said that under the deal, Lebanon would receive one million tons of fuel oil in exchange for "goods and services."

Lebanon's caretaker energy minister, Raymond Ghajar, said the deal would allow "the purchase of one million tons of Iraqi state fuel oil on behalf of Electricite du Liban (EDL)" over the course of a year.

The Iraqi oil cannot be used directly by Lebanon's power stations, so the country will continue to buy compatible fuel from other providers which will receive the Iraqi oil in exchange, Ghajar said.

The mechanism is "a bit complicated," he told a news conference at Beirut airport on his return from Baghdad.

The deal will cover a third of EDL's fuel needs, he said, expressing the hope that EDL could provide "up to nine or 10 hours of electricity (daily) over four months."

In exchange, Lebanon will provide "services and assistance to Iraq in the hospitals sector," he said.

Amid a dire financial and economic crisis,