Lebanon's gas wealth and revenues: Hezbollah risks removing Lebanon from the global financial system

In the wake of the potential discovery and production of natural gas, a battle looms over the anticipated revenues.

The question arises whether these revenues will flow smoothly through the global financial system or be subject to the concerns of Hezbollah, which may seek alternative channels to avoid US sanctions.

This article was originally published in and translated from the Lebanese newspaper Nidaa Al-Watan.

This debate was described by a source close to the consortium operating in Block 9 as "empty talk," as companies like TotalEnergies, for example, are unlikely to entertain Hezbollah's proposals.

Financial sources have emphasized that Hezbollah's concerns are its own, and should not hold Lebanon hostage to its specific fears. They argue that the potential revenues represent national wealth, and it should be remembered that there are international companies with investments that can only operate within the framework of the global financial system. Any deviation from this could lead to a comprehensive reevaluation of drilling and production projects.

Furthermore, sources have pointed out that most of Lebanon's central bank reserves are employed or deposited in international correspondent banks, and Lebanese banks have open accounts abroad. There is no need for fear as long as these billions remain untainted by terrorism financing and money laundering.

Placing the potential gas revenues in the realm of suspicion, as Hezbollah has begun to do, holds no merit unless Hezbollah claims Assad's share or veto power over how they are used, citing its role in maritime demarcation as a justification.

Other sources have cautioned against what Hezbollah is attempting to achieve, as it could obstruct the approval of the Sovereign Wealth Fund establishment law. Hezbollah might argue that it has a special say in revenue matters and does not want them under US control. This project, which has taken years to prepare, would become a contentious political and strategic issue between Hezbollah on the one hand and all others on the other.

A deputy involved with the Sovereign Wealth Fund commented, "Hezbollah has adopted an approach similar to Iran, Russia, and North Korea, thinking about not using the global SWIFT system and considering using a non-US currency, even though its salaries and revenues are in US dollars, just as it is focused on Eastern orientation. Hezbollah's proposals are the fastest way to transform Lebanon from a semi-failed or struggling state into a globally isolated one."

Sources conclude by emphasizing the need to reach an agreement with the International Monetary Fund (IMF) so that Lebanon can return to international capital markets and initiate negotiations with the Eurobond holders, eagerly eyeing the gas revenues if there is no agreement with Lebanon.