With food and fuel, Hezbollah braces for the worst in Lebanon collapse

A view shows a market for groceries with a Hezbollah slogan on it, in Beirut suburbs. (REUTERS)
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Updated 16 April 2021
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With food and fuel, Hezbollah braces for the worst in Lebanon collapse

  • Hezbollah readies for 'stage of darkness and hunger', a step reflecting worries over looming end to subsidies
  • Plan chimes with worries in Lebanon that people will have to rely on political factions for food and security

BEIRUT: Lebanon’s Hezbollah has made preparations for an all-out collapse of the fracturing state, issuing ration cards for food, importing medicine and readying storage for fuel from its patron Iran, three sources familiar with the plans told Reuters.
The moves, responding to a grave economic crisis, would mark an expansion of services provided by the armed movement to its large Shiite support base, with a network that already boasts charities, a construction firm and a pension system.
The steps highlight rising fears of an implosion of the Lebanese state, in which authorities can no longer import food or fuel to keep the lights on.
They underline Hezbollah’s growing role in tackling the emergency with services that the government would otherwise provide.
The plan chimes with worries in Lebanon that people will have to rely on political factions for food and security, such as in militia days during the 1975-1990 civil war.
In response to a question about Hezbollah’s plans, Leila Hatoum, an adviser to the caretaker prime minister, said the country was “in no condition to refuse aid” regardless of politics.
The sources from the pro-Hezbollah camp, who declined to be named, said the plan for a potential worst-case scenario has gathered pace as an end to subsidies looms in the coming months, raising the specter of hunger and unrest.
Lebanon’s currency has crashed as the country runs out of dollars, with no state rescue in sight. Food prices have shot up 400%.
Fights in supermarkets are now commonplace, as are people rummaging through trash. A brawl over food packages this week killed one person and injured two others.
Hezbollah’s plan would help shield its communities — not only members but also mainly Shiite residents of districts it dominates — from the worst of the crisis, the sources said.
Hezbollah, which with its allies has a majority in parliament and government, did not respond to a request for comment.
“The preparations have begun for the next stage...It is indeed an economic battle plan,” said one of the sources, a senior official.

OUTSIZED NETWORK
Already, the new ration card, seen by Reuters, helps hundreds of people buy basic goods in the local currency — largely Iranian, Lebanese and Syrian cheaper items at a discount up to 40%, subsidised by the party, the sources said.
The card — named after a Shiite Imam — can be used at co-ops, some of them newly opened, in the southern Beirut suburbs and parts of southern Lebanon where Hezbollah holds sway.
An Iran-funded paramilitary force which critics once called “a state within a state,” Hezbollah has grown more entangled in Lebanese state affairs in recent years.
Washington, which deems Hezbollah a terrorist group, has ramped up sanctions to choke off its sources of funding, including what it estimates as hundreds of millions of dollars from Tehran yearly.
Iranian funding keeps Hezbollah better off than many in the country’s mosaic of parties, including those opposed to its arsenal. Some factions have issued aid baskets to their patronage communities, but the Iran-backed network remains outsized in comparison.
“They’re all doing it...But Hezbollah’s scope is much bigger and more powerful, with more resources to deal with the crisis,” said Joseph Daher, a researcher who wrote a book on Hezbollah’s political economy. “This is more about limiting the catastrophe for its popular base. It means the dependency on Hezbollah particularly will increase.”
And while Hezbollah gives ration cards, the state, hollowed out by decades of graft and debt, has talked up the idea of such a card for poor Lebanese for nearly a year without acting.
Ministers have said the need for parliamentary approval has stalled the cabinet’s plan for cards.

DARKNESS AND HUNGER
Photos on social media of shelves stacked with canned goods, reportedly from one of Hezbollah’s co-ops, spread across Lebanon last week.
Fatima Hamoud, in her 50s, said the ration card allows her once a month to buy grains, oil and cleaning products for a household of eight. “They know we’re in bad shape,” she said. “Without them, what would we have done in these tough times?“
A second Shiite source said Hezbollah had filled up warehouses and launched the cards to extend services outside the party and plug gaps in the Lebanese market, where cheap alternatives are more common than pre-crisis.
He said the card offers a quota, based on the family size, for needs like sugar and flour.
The goods are backed by Hezbollah, imported by allied companies or brought in without customs fees through the border with Syria, where Hezbollah forces have a footing since joining the war to back Damascus alongside Iran.
The source added that Hezbollah had similar plans for medicine imports. Some pharmacists in the southern suburbs of Beirut said they had received training on new Iranian and Syrian brands that popped up on the shelves in recent months.
Two of the sources said the plan included stockpiling fuel from Iran, as Lebanon’s energy ministry warns of a possible total blackout. The senior official said Hezbollah was clearing storage space for fuel in next-door Syria.
“When we get to a stage of darkness and hunger, you will find Hezbollah going to its back-up option...and that is a grave decision. Then Hezbollah will fill in for the state,” said the senior official. “If it comes to it, the party would’ve taken its precautions to prevent a void.”


Hamas chief Haniyeh arrives in Turkiye for talks

Updated 40 min 3 sec ago
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Hamas chief Haniyeh arrives in Turkiye for talks

  • Fidan said he spoke with Haniyeh, who lives in Qatar, about how Hamas — designated as a terrorist organization by Israel, the United States and the European Union — “must clearly express its expectations, especially about a two-state solution”

ISTANBUL: A leader of Palestinian militant group Hamas, Ismail Haniyeh, arrived in Istanbul Friday evening for talks with Turkish President Recep Tayyip Erdogan as the death toll in Gaza passed 34,000.
A statement from Hamas Friday said Erdogan and Haniyeh would discuss the conflict in Gaza, adding that the head of the group’s political bureau was accompanied by a delegation.
Middle East tensions are at a high after Israel’s reported attack on Iran and Gaza bracing for a new Israeli offensive.
Erdogan insisted on Wednesday that he would continue “to defend the Palestinian struggle and to be the voice of the oppressed Palestinian people.”
But talking to journalists on Friday, he refused to be drawn on the details on the meeting.
Turkish Foreign Minister Hakan Fidan was in Qatar Wednesday and said he spent three hours with Haniyeh and his aides for “a wide exchange of views in particular about negotiations for a ceasefire.”
Qatar, a mediator between Israel and Hamas, acknowledged Wednesday that negotiations to end hostilities in Gaza and liberate hostages were “stalling.”
Fidan said he spoke with Haniyeh, who lives in Qatar, about how Hamas — designated as a terrorist organization by Israel, the United States and the European Union — “must clearly express its expectations, especially about a two-state solution.”
Erdogan’s last meeting with Haniyeh was in July 2023 when Erdogan hosted him and Palestinian president Mahmud Abbas at the presidential palace in Ankara. Haniyeh had last met Fidan in Turkiye on January 2.
The war in Gaza started after Hamas’s unprecedented attack on Israel on October 7 that resulted in the deaths of about 1,170 people, mainly civilians, according to an AFP tally of official Israeli figures.
Militants also took about 250 hostages. Israel says around 129 are believed to be held in Gaza, including 34 presumed dead.
Israel’s retaliatory military campaign has killed at least 34,012 people, mostly women and children, according to Gaza’s Hamas-run health ministry.
 

 


Huge blast at military base used by Iraqi Popular Mobilization Forces, sources say

Shiite fighters from the Popular Mobilization Forces advance towards the city of Tal Afar, Iraq. (AFP file photo)
Updated 20 April 2024
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Huge blast at military base used by Iraqi Popular Mobilization Forces, sources say

  • PMF sources said the strikes targeted a headquarters of the PMF at the Kalso military base near the town of Iskandariya around 50 km south of Baghdad

BAGHDAD: A huge blast rocked a military base used by Iraq’s Popular Mobilization Forces (PMF) to the south of Baghdad late on Friday, two PMF and two security sources told Reuters.
The two security sources said the blast was a result of an unknown airstrike, which happened around midnight Friday.
The two PMF sources pointed out the strikes did not lead to casualties but caused material damage.
PMF sources said the strikes targeted a headquarters of the PMF at the Kalso military base near the town of Iskandariya around 50 km south of Baghdad.
Government officials did not immediately respond to a Reuters request for comment.
The PMF started out as a grouping of armed factions, many close to Iran, that was later recognized as a formal security force by Iraqi authorities.
Factions within the PMF took part in months of rocket and drone attacks on US forces in Iraq amid Israel’s Gaza campaign but ceased to do so in February.

 


Leaders of Jordan and Pakistan call UAE president to express concern about effects of severe storm

Updated 19 April 2024
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Leaders of Jordan and Pakistan call UAE president to express concern about effects of severe storm

  • Leaders passed on their best wishes to the country as it recovers from the storms

DUBAI: The president of the UAE, Sheikh Mohammed bin Zayed Al-Nahyan, received telephone calls from King Abdullah of Jordan and Pakistan’s Prime Minister Shehbaz Sharif on Friday, during which they expressed concern about the effects of the severe weather, including unusually heavy rainfall, that battered parts of the country this week.

They also passed on their best wishes to the country as it recovers from the storms and “conveyed their heartfelt hopes for the safety and prosperity of the UAE and its people, praying for their protection from any harm,” the Emirates News Agency reported.

Sheikh Mohammed thanked both leaders for their warm sentiments, and emphasized the strong bonds between the UAE and their nations.

The UAE and neighboring Oman were hit by unprecedented rainfall and flooding on Tuesday, with more than 250 millimeters of rain falling in parts of the Emirates, considerably more than is normally seen in a year. Dubai International Airport was forced to close temporarily when runways were flooded.
 


Peshmerga fighter dies in Turkish strike in north Iraq

Updated 19 April 2024
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Peshmerga fighter dies in Turkish strike in north Iraq

JEDDAH: A member of the Kurdish Peshmerga security forces was killed on Friday in a Turkish drone strike in the autonomous Kurdistan region of northern Iraq.

Ankara regularly carries out ground and air operations in the region against positions of the outlawed PKK, the Kurdish separatist group that has waged a decades-long insurgency against the Turkish state.
The victim of Friday’s attack died in a drone strike on his vehicle, said Ihsan Chalabi, mayor of the mountainous Sidakan district near Iraq’s borders with Turkiye and Iran.
For decades, Turkiye has operated several dozen military bases in northern Iraq in its war against the PKK, which Ankara and its Western allies consider a terrorist group.
Both Baghdad and the Kurdish regional government have been accused of tolerating Turkiye’s military activities to preserve their close economic ties.
At the beginning of April, a man described as “high-ranking military official” from the PKK was killed in a Turkish drone strike on a car in the mountainous Sinjar region, according to the Kurdistan counterterrorism services.
Turkish President Recep Tayyip Erdogan is expected to visit Baghdad on Monday on his first official visit to Iraq since 2011.
Iraq’s Defense Minister Thabet Al-Abassi in March ruled out joint military operations against the PKK, but said that Turkiye and Iraq would “work to set up a joint intelligence coordination center.”


Middle East in ‘shadow of uncertainty due to regional conflicts’

Updated 19 April 2024
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Middle East in ‘shadow of uncertainty due to regional conflicts’

WASHINGTON: Economies in the Middle East and North Africa face a “shadow of uncertainty” from ongoing tensions in the region, a senior IMF official said.
“We are in a context where the overall outlook is cast into shadows,” Jihad Azour, the International Monetary Fund’s director for the Middle East and Central Asia department, said in an interview in Washington.
“The shadow of uncertainty on the geopolitical side is an important one,” added Azour, a recent candidate for the next Lebanese president.
In the face of the ongoing conflicts in Gaza and Sudan and a recent cut to oil supplies by Gulf countries, the IMF has pared back its growth outlook for the Middle East and North Africa region once again.

FASTFACT

Economic activity in Gaza has ‘come to a standstill’ and the IMF estimates that economic output in the West Bank and Gaza contracted by six percent last year.

The IMF expects growth in MENA of 2.7 percent this year — 0.2 percentage points below its January forecast — before picking up again next year, the IMF said in its regional economic outlook report.
The risks to growth in the MENA region remain heightened, the IMF said, pointing to the danger of greater regional spillovers from the ongoing Israel-Gaza war.
“We have concerns about the immediate and lasting impact of conflict,” Azour said.
The IMF report said that economic activity in Gaza has “come to a standstill” and estimates that economic output in the West Bank and Gaza contracted by 6 percent last year.
The IMF said the report excludes economic projections for the West Bank and Gaza for the next five years “on account of the unusually high degree of uncertainty.”
The IMF cannot lend to the West Bank and Gaza because they are not IMF member countries.
However, Azour said it has provided the Palestinian Authority and the central bank with technical assistance during the current conflict.
“When we move into the reconstruction phase, we will be part of the international community support to the region,” he added.
Azour also discussed the situation in Sudan, where thousands have been killed in a civil war that has also devastated the economy, causing it to contract by almost 20 percent last year, according to the IMF.
“The country is barely functioning, institutions have been dismantled,” he said.
“And for an economy, for a country like Sudan, with all this potential, it’s important to stop the bleeding very quickly and move to a phase of reconstruction,” he added.
The recent Houthi attacks have particularly badly hit the Egyptian economy on Red Sea shipping, which caused trade through the Egypt-run Suez Canal to more than halve — depriving the country of a key source of foreign exchange.
Egypt reached an agreement last month to increase an existing IMF loan package from $3 billion to $8 billion after its central bank hiked interest rates and allowed the pound to plunge by nearly 40 percent.
A key pillar of the current IMF program is the privatization of Egypt’s state-owned enterprises, many of which are owned by or linked to the military.
“This is a priority for Egypt,” Azour said. Egypt needs to have a growing private sector and give space for the private sector to create more jobs.”
“We have an opportunity to re-engineer the state’s role, to give the state more responsibility as an enabler and less as a competitor,” he said.