Lebanon: Possible Government Formation by the End of the Week

President Michel Aoun met Thursday with French ambassador Bruno Foucher and discussed with him the current situation in Lebanon and the ongoing contacts to form a new government (NNA)
President Michel Aoun met Thursday with French ambassador Bruno Foucher and discussed with him the current situation in Lebanon and the ongoing contacts to form a new government (NNA)
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Lebanon: Possible Government Formation by the End of the Week

President Michel Aoun met Thursday with French ambassador Bruno Foucher and discussed with him the current situation in Lebanon and the ongoing contacts to form a new government (NNA)
President Michel Aoun met Thursday with French ambassador Bruno Foucher and discussed with him the current situation in Lebanon and the ongoing contacts to form a new government (NNA)

Several sources confirmed on Thursday the obstacles on the Sunni and Druze representation in the new Lebanese government have been removed as talks are expected to continue on Friday to resolve the problem on the Christian figures who would get the foreign and energy ministry portfolios.

All parties have agreed that the new cabinet should not include members of the outgoing government based on the request of Prime Minister designate Hassan Diab.

Informed sources predicted the announcement of the new cabinet by the end of the week if an agreement is reached between Diab and caretaker Foreign Minister and the head of the Free Patriotic Movement, Gebran Bassil, on the names of ministers to assume the portfolios of energy and foreign affairs.

The sources told Asharq Al-Awsat that the Druze obstacle has been resolved. Druze parties have refused to be represented by only one minister.

Diab was also able to choose former Judge Fawzi Adham for the Interior Ministry after facing difficulties in finding a Sunni figure who accepts to assume the post.

The Central News Agency quoted sources on Thursday as saying that “one Christian figure, concerned by the cabinet formation talks, is rejecting all names suggested by Diab to assume ministries headed by Christian and even some non-Christian figures.”

However, the sources added that Diab rejected such behaviors and insisted that all parties stick to the norms based on which he appointed the Druze and Sunni ministers.

Lebanese Forces leader Samir Geagea said in a statement that leaked news about the new government lineup are not reassuring, especially that the political parties responsible for the current crisis are behind the nomination of ministers.

"Everything that has been leaked by the media on the upcoming government is not reassuring, neither in terms of the interference of the political parties that caused the current crisis in the country, nor in terms of the distribution of portfolios among them," he said.



‘Oil-for-Salaries’ Deal Ends Dispute Between Baghdad and Erbil

Kurdistan Regional Government Prime Minister Masrour Barzani stressed the need to put an end to attacks on the region, particularly targeting oil fields (Reuters)
Kurdistan Regional Government Prime Minister Masrour Barzani stressed the need to put an end to attacks on the region, particularly targeting oil fields (Reuters)
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‘Oil-for-Salaries’ Deal Ends Dispute Between Baghdad and Erbil

Kurdistan Regional Government Prime Minister Masrour Barzani stressed the need to put an end to attacks on the region, particularly targeting oil fields (Reuters)
Kurdistan Regional Government Prime Minister Masrour Barzani stressed the need to put an end to attacks on the region, particularly targeting oil fields (Reuters)

The Iraqi federal government and the Kurdistan Regional Government (KRG) reached a landmark agreement on Thursday that ends a years-long dispute over oil revenues and public sector salaries.

The deal, announced following an emergency cabinet meeting in Baghdad, covers oil production handover, non-oil revenue sharing, and the resumption of salary payments to KRG employees beginning with May 2025.

According to a government statement, the agreement was based on a recommendation by a ministerial committee and aligned with Kurdistan’s regional cabinet decision No. 285, issued on July 16.

KRG Prime Minister Masrour Barzani confirmed the breakthrough, stating that the federal government had approved a “mutual understanding regarding salaries and the region’s financial entitlements.”

Under the terms of the deal, the KRG will hand over all crude oil production - currently 280,000 barrels per day (bpd) - to Iraq’s State Oil Marketing Organization (SOMO), with the exception of 50,000 bpd reserved for domestic consumption. This marks the first such commitment in more than two years, during which oil exports were suspended amid ongoing disputes and recent drone strikes targeting northern oilfields operated mostly by US firms.

In return, the federal Ministry of Finance will pay $16 per barrel, in cash or in kind, to cover production costs. Revenues from locally consumed oil derivatives will go to the federal treasury after deducting production and transport expenses.

On non-oil revenues, the KRG will transfer an initial 120 billion Iraqi dinars (approx. $92 million) to the federal finance ministry, representing an estimate of Baghdad’s share for May. A joint audit team from both governments will verify and finalize the figures within two weeks.

To resolve long-standing disputes over public salaries, a new joint committee will oversee the localization of KRG employee payrolls, in line with a ruling from the Federal Supreme Court. The committee is expected to complete its work within three months.

As part of the agreement’s first phase, the federal government will begin disbursing May salaries following confirmation from SOMO that the agreed oil volumes have been received.