Libya may face financial crisis due to oil blockade by rival general Khalifa Haftar

WION Web Team New Delhi, Delhi, India Feb 16, 2020, 09.27 PM(IST)

File photo. Photograph:( Reuters )

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Oil is the main source of national income for the north African country.

The head of Libya's internationally recognised government has now said that the country may face a financial crisis in 2020 because of a blockade of oil terminals and fields by rival general Khalifa Haftar.

Libya's oil output has fallen sharply since January 18 when the blockade started.

Oil is the main source of national income for the north African country.

With the closure of the eastern Libyan oil ports, Haftar's move has cut Libya's crude output by half.

Before the blockade, Libya was producing at least 1.2 million barrels per day.

The crude output has now dropped to almost a hundred and sixty thousand barrels per day.

Also read: Erdogan states that Haftar cannot be expected to respect Libya truce

Over 85 per cent of Libya's crude exports go to Europe, while around 32 per cent of Libyan oil goes to Italy, 14 per cent to Germany, 10 per cent to China and France and 5 per cent to the united states.

Haftar's position has now been strengthened as the oil fields remain shut.

The eastern-commander had accused the Tripoli-based government of using oil revenues to fund foreign fighters.

His comes as a power struggle between Sarraj's GNA based in Tripoli and a parallel administration backed by Haftar's self-styled Libyan national army in the east has left the country divided.

Both the forces have been fighting since April to gain control of the capital.

Fighting has continued despite calls for a truce by both Russia and Turkey and an international peace summit aimed at brokering peace.