Lebanon to Ask Russia for Help Restoring Port, Building Power Plants

This Aug. 25, 2020, photo shows the damaged grain silos amid the destruction at Beirut's harbor, in the aftermath of the monster explosion at the port in early August. (AFP)
This Aug. 25, 2020, photo shows the damaged grain silos amid the destruction at Beirut's harbor, in the aftermath of the monster explosion at the port in early August. (AFP)
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Lebanon to Ask Russia for Help Restoring Port, Building Power Plants

This Aug. 25, 2020, photo shows the damaged grain silos amid the destruction at Beirut's harbor, in the aftermath of the monster explosion at the port in early August. (AFP)
This Aug. 25, 2020, photo shows the damaged grain silos amid the destruction at Beirut's harbor, in the aftermath of the monster explosion at the port in early August. (AFP)

Lebanese Prime Minister designate Saad al-Hariri intends to ask Russia for economic assistance during a visit to Moscow later this week, the RIA news agency cited his special representative as saying on Tuesday.

Hariri will seek Moscow’s help restoring the port in Beirut, devastated by a huge chemical explosion last August, and building electric power stations, RIA said.

The explosion killed 200 people and caused billions of dollars worth of damage, further weakening an economy already facing meltdown as a banking crisis sent the value of the Lebanese pound plunging against the US dollar.

Last week, German companies including Hamburg Port Consulting presented a multi-billion-dollar plan to rebuild the port and neighboring districts, while French container shipping group CMA CGM also said it was pursuing a plan to restore the port.

Neither project can advance until Lebanon’s leaders break a political deadlock which has prevented the formation of a new government and stalled economic reforms, which Western countries say must come before aid or investment flows.

Hariri, a three-time prime minister, resigned in 2019 after nationwide protests against a political elite which demonstrators blamed for pushing the country into crisis.

He was nominated prime minister again in October but remains at loggerheads with President Michel Aoun and has been unable to form a new government.

RIA quoted Hariri’s envoy, George Shaaban, as saying he would seek Russian support to help address electricity shortages.

“There is a need to build new power plants that will be able to supply the country with 24-hour electricity… We will look to Russia and its possible assistance to Lebanon, both in these sectors and others,” Shaaban added.

Hariri will also discuss the possibility of Russia supplying vaccines against the coronavirus, he said.



Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.