One of the main topics of the past week was the situation in Libya.

The world community is concerned about the development of internecine conflict, which threatens to completely destroy the country's economy. Due to the fact that supporters of the Libyan commander Khalif Haftar blocked the country's ports in mid-January, oil production in the country fell to the lowest level since 2011. At the same time, too sharp increase in production in Libya will complicate the already difficult task of OPEC + to minimize the consequences of the coronavirus epidemic at the world oil market. Libyan oil production fell to 180,000 barrels per day - a record low since 2011. At the same time, before the blockade of ports, production in Libya was 1.2 million barrels per day.

All of this immediately affected the state budget, the losses had already reached 1.77 billion US dollars. The Libyan Central Bank issued a statement calling on everyone to immediately restore oil production and oil exports, since the loss of the state’s sole source of income leads to a political, economic and social crisis in the country. In addition, in its report, the Central Bank noted that the Libyan treasury did not receive any income from the sale of fuel on the local market. At the same time, revenues from the sale of oil in December 2019 in the amount of 2.47 billion dinars were received in January 2020.

The attempts to resolve the economic crisis in the country do not stop; Libyan economists are ready to revise the procedure for distributing oil revenues, which are the key for the country's budget. Based on the results of the meeting in Cairo organized by the UN, it was decided to create a special economic commission to develop a plan to solve the "urgent problems." The next meeting is scheduled for early March. Oil traders are closely following the process of negotiations in Libya. After all, there is a possibility of a sharp increase in oil production in the country. If the blockade of ports is lifted and oil production is fully restored, the market will replenish 1 million barrels of oil per day, and this will significantly complicate OPEC's efforts to minimize the economic consequences of the coronavirus epidemic in China.

After the overthrow and assassination of Libyan leader M. Gaddafi in 2011 as a result of the US-organized revolution, Libya, which had flourished earlier, was in a political crisis. The country has virtually ceased to function as a single state, and the means of struggle for many years has been the seizure or blocking of oil infrastructure. The situation is aggravated by the fact that many motley tribes live in Libya, which M. Gaddafi was once able to unite. The Government of National Accord (PNC), formed with the support of the UN and the European Union and led by F. Sarraj, is based in the capital of Libya, Tripoli. His actions cause dissatisfaction with the Cabinet, together with the House of Representatives (Parliament), which are supported by the LNA of Marshal H. Haftar in eastern Libya. The east of Libya believes that oil revenues are not distributed equitably, leaving for the most part the PNS-controlled the west of Libya.

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