Amid poor economic outlook and stalled political process, new feud emerged about currency depreciation. 

Political process remained deadlocked despite nominal pledges to unify country. During meeting in Saudi Arabia’s capital Riyadh, foreign ministers of member countries of Gulf Cooperation Council (GCC) 3 March expressed “support for the efforts of the United Nations to reach a political solution, hold elections and unify state institutions” in Libya. Libya’s Parliament Speaker Aghela Saleh, head of Presidential Council Mohamed Mnefi, and head of Tripoli-based High State Council Mohamed Tekkala 10 March met in Egypt’s capital Cairo under Arab League aegis, agreed to form “technical committee” to resolve contentious points of electoral legislation. Despite pledges to break deadlock, UN envoy’s efforts to resolve disagreements in draft electoral laws and address contentious issue of appointing new interim government stalled. 

Move to depreciate currency sparked political recriminations. In wake of rising foreign currency exchange rate on black market, Parliament speaker Aghila Saleh 14 March issued decree imposing 27% tax (labelled as fee) on foreign currency exchange, stating this was a means to raise money for “development projects and debt”. Move faced opposition in parliament, with deputy parliament speaker Fawzi Nuweiri 15 March declaring he opposed what amounts to devaluation of currency. In televised speech PM Abdul Dabaiba 18 March also rejected proposed tax on foreign currency exchange, claiming that Libya’s economy is strong with a surplus, low inflation, and high foreign reserves; accused Central Bank of mismanagement and blamed Speaker of Parliament for trying to cover costs of Khalifa Haftar’s spending in eastern Libya through tax. Central Bank 19 March, however, ordered banks to comply with imposition of tax on foreign currency purchases.

New initiatives to facilitate transfer of money from Tripoli to east reduced financial incentives to agree on political solution; Tripoli-based govt struck deal with militias for regular forces to police city.

Rival authorities continued to strike arrangements to maintain status quo. Eastern-based parliament, House of Representatives (HoR), 5 Feb established Libyan Development and Reconstruction Fund tasked with leading reconstruction efforts across country, and funded directly by Central Bank in capital Tripoli; HoR 19 Feb appointed at its helm east-based military strongman Khalifa Haftar’s son, Belqasem. HoR early Feb also established new financial committee that will sign off on countrywide budgetary disbursements; Tripoli’s position on move unclear. Meanwhile in address to UN Security Council, UN envoy Abdoulaye Bathily 15 Feb warned Libya could slide into “disintegration” if unable to form unified govt and move toward elections. UN Security Council 27 Feb reiterated call for elections “as soon as possible”.

Eastern forces reportedly prepared for show of force and received Russian tanks. Libyan news outlets 12 Feb reported 40 Russian T72 tanks were unloaded in eastern port of Tobruk, allegedly to support Haftar-led Libyan National Army (LNA). Pro-LNA official in following days confirmed reports, adding they expected to receive more fighter jets from Russia. Ahead of thirteenth anniversary of toppling of former leader Muammar Qadhafi on 17 Feb, Haftar-led forces reportedly dispatched military vehicles to Qadhafi’s hometown of Sirte (north) to conduct military exercises there, allegedly with Russia’s support.

Militias agreed to leave Tripoli after series of clashes in recent months. Tripoli-based Interior Minister Imad Trabelsi 21 Feb said at least five militias that have been controlling Tripoli for past ten years agreed to return to their barracks by 9 April; Trabelsi said regular forces will police Tripoli again. Earlier in month, inter-militia clashes continued in western Libya. Notably, apparent revenge attack against militiaman 17 Feb left ten people dead in Tripoli’s Abu Salim neighbourhood.

In another important development. Petroleum Facilities Guard militiamen 25 Feb shut down oil facilities across country in dispute over pay, next day suspended strike after Tripoli-based PM Dabaiba agreed to raise their salaries.

Tripoli-based govt’s decision to lift fuel subsidies sparked backlash, and latest UN-sponsored national dialogue initiative aimed at resolving political stalemate remained stalled.

Public debate revolved around financial and economic feuds. Tripoli-based PM Abdulhamid Dabaiba 10 Jan announced controversial plan to remove fuel subsidies, in likely attempt to curb smuggling of subsidised fuel. Move created uproar among constituencies and politicians who have ties to smuggling rackets, and eastern-based govt in following days called decision “null and void”. Amid opposition and concern that removal of subsidies without proper compensation plans could cause significant inflation and impact ordinary Libyans, Dabaiba 17 Jan said issue will be put to referendum. 

More controversies affected oil sector. National Oil Corporation (NOC) 7 Jan declared force majeure at Sharara Oil Field after protesters closed site in uproar over deteriorating economic conditions in southern region; NOC 21 Jan lifted force majeure after deal with protesters.

UN envoy initiative to resolve political stalemate found no traction. U.S. ambassador to Libya, Richard Norland, in Jan visited capital Tripoli and eastern city of Benghazi to mobilise support for UN envoy Abdoulaye Bathily-sponsored meeting of Libya’s five main political stakeholders to settle “issues impeding progress toward elections”. Speaker of eastern-based House of Representatives (HoR), Aguila Saleh, 23 Jan met with Norland in Benghazi and confirmed rejection of Bathily’s invitation, insisting that first step toward unification should be appointment of new unity govt. Norland same day also met with Libyan National Army (LNA) leader Khalifa Haftar in Benghazi to discuss political stalemate. Following meetings with Norland, Dabaiba and head of Tripoli-based advisory body High Council of State, Mohamed Takala, around 25 Jan announced accepting Bathily’s invitation. Bathily also held series of meetings, including with Haftar 30 Jan and Saleh next day, who reiterated his side would not attend UN-brokered political dialogue unless govt appointed by east-based parliament was present, or both govts were excluded. Meanwhile, Presidency Council pushed separate initiative, National Reconciliation Conference, with preparatory committee meeting held 14 Jan in Zuwara city; conference would supposedly be held in Sirte city in April and include members of former Qadhafi regime. 

UN-led push to convene meeting of five major political stakeholders faced setbacks as disagreements persisted on whether new govt or elections should come first.

UN envoy’s initiative to convene stakeholders’ meeting faced obstacles. UN Special Representative for Libya, Abdoulaye Bathily, 18 Dec briefed members of UN Security Council on his latest initiative to convene meeting of Libya’s five main political stakeholders, said all invitees had submitted names of their respective delegations but lamented that “Libyan leaders show no commitment to ending the long-standing stalemate”. Stakeholders have reportedly stated irreconcilable conditions for their participation. Notably, eastern-based House of Representatives (HoR) Speaker Aguila Saleh conditioned attendance to focusing discussions on formation of “new govt for elections” and rejected participation of Tripoli-based PM Abdelhamid Dabaiba on grounds that he is no longer legitimate. Meanwhile, Dabaiba, while ready to discuss outstanding issues in electoral laws, categorically rejected any discussions on “new govt”. Libyan National Army (LNA) chief Khalifa Haftar conditioned Dabaiba’s Govt of National Unity (GNU) participation to inclusion of HoR-appointed govt, or exclusion of both govts.

Drone allegedly targeted Russian military cargo in country’s east. Local media reports suggested drone mid Dec targeted Russian Ilyushin military cargo aircraft in Jufra airbase in central Libya; U.S. Africa Command denied involvement. Cargo plane could have presumably been used to deliver equipment to Haftar or to his allies as Jufra airbase falls under LNA’s authority; base is also known, however, to be transit point for Russian military activity in neighbouring African states. Some foreign analysts suggested strike could be work of Tripoli-based authorities who possess armed drones but whether these have sufficient autonomy to carry out strike in Jufra, some 500 kilometres from capital, is unclear.

In other important developments. UN Mission 21 Dec expressed concern over death in custody of former Defence Minister Al-Mahdi al-Barghathi after authorities in Oct arrested him in Benghazi city, demanded independent investigation. Presidency Council early Dec expressed concern after Niger in Nov repelled law that criminalised transportation of irregular migrants to neighbouring Libya and Algeria for onward travel to Europe, while GNU reportedly appealed for urgent EU support to secure country’s southern border.

Attempts to break political deadlock and unify state institutions continued to fail as distrust between rival authorities remained high.

Rival authorities remained at loggerheads on new unified executive and elections. Heads of rival assemblies, Aghela Saleh of eastern-based House of Representatives (HoR), and Mohamed Takala of Tripoli-based High State Council (HSC), around 8 Nov met in Egypt but failed to reach breakthrough; Saleh continued to back HoR-approved election laws and called for formation of interim unity govt, while Takala insisted that his assembly did not approve final version of laws and allegedly refused to back new govt formation. Taking stock of impasse, UN envoy Abdoulaye Bathily 23 Nov invited key stakeholders – Presidential Council, HoR, HSC, Tripoli-based govt and Libyan National Army – to attend meeting to reach settlement on outstanding issues pertaining to electoral process. Eastern-based govt of Osama Hamad immediately denounced its exclusion from UN-led talks, said Bathily has “entrenched division among Libyans” and called on UN Sec Gen António Guterres to “appoint a new UN envoy”.

Unified mechanism to lead reconstruction of flood-hit city of Derna remained elusive. Eastern-based govt headed by Osama Hamad 1-2 Nov hosted international conference for reconstruction of Derna city following September devastating floods; over 70 foreign companies and handful of diplomats attended, but Tripoli-based authorities were not invited and western diplomats, who do not recognise eastern-based govt, boycotted. UN mission (UNSMIL) continued to call for unified and coordinated mechanism for reconstruction, warning that unilateral initiatives risk deepening existing rift between rival administrations.

In other important developments. Tensions remained elevated in eastern city of Benghazi and western city of Gharyan following deadly fighting in October; separate incidents were triggered by return of two military commanders to their hometowns, and served as reminder that perceptions of hostile movement by rival forces can fuel localised violence. Meanwhile, dispute between Tripoli-based PM Abdulhamid Dabaiba and Central Bank Governor Seddiq al-Kebir early Nov reached new peak, allegedly over latter’s plan to meet eastern-based authorities; following spat, al-Kebir reportedly left Tripoli and flew out to Türkiye. Turkish Parliament 30 Nov approved extension of military mission in Libya for additional 24 months.

Parliament passed election laws, but major obstacles to holding votes remained; deadly clashes erupted between rival forces in eastern city of Benghazi and western city of Gharyan.

Election laws continued to spark controversy. Eastern-based House of Representatives (HoR) early Oct approved revised versions of presidential and parliamentary election laws and referred them to High Electoral Commission for implementation. Mohamed Tekala, new head of rival Tripoli-based High State Council (HSC), in following days rejected laws and scrapped cooperation with HoR; some HSC members contended that move did not reflect HSC’s stance, but just that of Tekala-aligned members. In briefing to UN Security Council, UN Special Representative for Libya Abdoulaye Bathily 16 Oct welcomed “some progress” in electoral process, but noted most politically contentious issues remained unresolved, with mandatory second round of presidential election and linkage between presidential and parliamentary elections putting electoral process at “high risk of disruption”; Bathily also noted negotiations between rival authorities required to form new govt ahead of elections remain elusive.

Rival forces engaged in deadly clashes. Former Tripoli-based Defence Minister al-Mahdi al-Barghathi early Oct travelled to his home city of Benghazi, allegedly alongside 40 of his followers. Claiming that Barghathi’s return had not been pre-approved and could be first step in plot to mobilise anti-Field Marshal Khalifa Haftar forces in Benghazi, forces aligned with Haftar’s Libyan National Army (LNA) 6 Oct attempted to arrest him in Salmani district, sparking firefight that allegedly left at least 17 people dead, including one of Barghathi’s sons; LNA also cut off all communication in Benghazi for over a week. Meanwhile, clashes 29 Oct erupted in western city of Gharyan between Tripoli-based govt-affiliated militia and forces loyal to militia leader Adel Daab (who was expelled from Gharyan in 2019 by forces affiliated to former Tripoli-based govt after he handed control of city to Haftar’s forces); local sources reported eight people killed and 27 injured.

In other important developments. After flooding in Sept devastated eastern city of Derna, anger continued to simmer among locals who blame disaster on poor governance. Total death toll still uncertain: local authorities confirmed retrieving over 4,000 bodies, but number of missing is unclear.

Floods devastated eastern city of Derna after Storm Daniel caused dam collapse, leaving thousands dead; UN envoy for Libya reiterated support for unified govt before elections.

Up to 20,000 people feared dead after devastating floods. As Storm Daniel 11 Sept hit eastern Libya, two dams located upstream from coastal city of Derna collapsed; water swiped away entire neighbourhoods, resulting in an estimated 20,000 deaths. In rare sign of unity, aid in following days poured from across country. Various state agencies affiliated with Tripoli-based govt sent in aid and some military commanders from western Libya arrived in Derna. East-based authorities however denied entry to Derna to Tripoli-based govt ministers in likely attempt to prevent Tripoli from taking credit for rescue efforts. International support effort also defied traditional geopolitical divides. Traditional allies of general commander of Libyan National Army, Field Marshal Khalifa Haftar, including United Arab Emirates and Egypt, immediately stepped in to help, but historical allies of Tripoli-based authorities, Qatar and Türkiye, also sent search and rescue teams and specialized equipment to help locate survivors. Debate erupted over human responsibility for tragedy. Hundreds of protesters 18 Sept rallied in Derna, blaming long-term neglect for dam collapse and chanting slogans against eastern parliament, House of Representatives (HoR), and its speaker Aguila Saleh. Country’s top prosecutor 25 Sept announced detention of eight current and former officials pending investigation into collapse of dams; several others reportedly detained in following days.

UN envoy for Libya reiterated support for unified govt before elections. UN special envoy to Libya, Abdoulaye Bathily, early Sept met with several Libyan officials, including Aguila Saleh and Khalifa Haftar, and Tripoli-based PM Dabaiba. In meeting with latter, Bathily 5 Sept reiterated elections should take place under supervision of unified govt. Bathily in aftermath of Derna flood continued to urge Libyan stakeholders to step up efforts toward holding elections and unifying national institutions.

Controversy over former FM’s meeting with Israeli counterpart persisted. After revelation that Tripoli-based FM Najla al-Mangoush held talks with her Israeli counterpart, Eli Cohen, in Aug sparked widespread protests, leading to her dismissal, prosecutor’s office 2-3 Sept launched investigation into bilateral meeting.

In apparent policy shift, UN envoy for Libya called for unified govt before elections take place; rival militias engaged in deadly clashes in Tripoli, revealing precarious security outlook in capital.

Amid political gridlock, UN urged unified govt for elections. Tripoli-based consultative body, High State Council (HSC), 6 Aug elected Mohamed Takala as new leader, unseating incumbent Khaled Mishri, with unclear consequences on HSC’s support for eastern-based House of Representatives (HoR)’s plan to appoint interim govt as part of roadmap to general elections. HoR 8 Aug discussed draft election laws agreed upon in June by UN-backed “6+6” joint committee (composed of HoR and HSC representatives) and referred comments back to committee. Meanwhile, UN envoy for Libya Abdoulaye Bathily 22 Aug told UN Security Council agreement on unified govt is “imperative” to lead country to elections; statement appears as reversal of UN longstanding position that elections should be held ahead of govt unification.

Central Bank announced reunification after decade-long division. Central Bank Governor Sadiq al-Kabir 20 Aug said Central Bank of Libya reinstated as unified institution almost ten years after splitting into two rival branches; it is still unclear, however, whether procedures required to make unification operational have been activated.

Fighting between rival Tripoli militias left dozens dead. Members of Special Deterrence Force (alias Rada militia) 14 Aug detained commander of 444 Brigade, Mahmud Hamza, at Mitiga airport in capital Tripoli. In response, members of 444 Brigade opened fire at Rada militiamen, leading to intense fighting with heavy artillery around Mitiga airport and elsewhere in Tripoli that continued into 15 Aug; UN reported at least 55 people killed and over 100 injured. Fighting, which in following days subsided as Hamza was released, took place amid turf war between Rada militia and 444 Brigade commanders (both allied to Tripoli-based PM Dabaiba) for control of Tripoli International Airport upon its reopening.

In other important developments. Eastern strongman Khalifa Haftar’s Libyan National Army 25 Aug launched airstrikes against Chadian rebel positions on Libyan side of border with Chad (see Chad). Dabaiba 28 Aug suspended FM Najla Mangoush after protests previous day erupted in several cities over Mangoush’s meeting with Israeli counterpart.

Parliament approved roadmap for selection of new unity govt before elections, drawing UN’s ire, and oil revenue distribution took centre stage.

Parliament adopted controversial plan to appoint new unity govt. East-based House of Representatives (HoR) 25 July approved roadmap paving the way for appointment of supposed unity govt before presidential and parliamentary elections; HoR presented plan as part and parcel of broader roadmap agreed to in June by HoR and Tripoli-based High State Council (HSC) representatives forming UN-backed “6+6” committee. UN Support Mission in Libya (UNSMIL) 26 July criticised “unilateral” initiative going counter to UN-backed efforts to enable elections as soon as possible, and warned it could “inflict serious negative consequences for Libya and trigger further instability and violence”. In response, HoR accused UN of misleading public opinion when describing decision as “unilateral”.

Rival factions set up joint committee on oil revenue distribution. Head of east-based govt, Osama Hamad, HoR chairman Aguila Saleh, and eastern strongman Field Marshall Khalifa Haftar late June-early July made separate calls for “fairer” redistribution of oil revenues, threatening to close off oil production should Tripoli fail to put portion of oil revenues at direct disposal of eastern authorities. In response, Tripoli-based Presidency Council Chairman Mohamed Menfi around 6 July agreed to form committee tasked with “distributing oil revenues” and including representatives from eastern and western Libya. UN, EU and most western embassies in following days welcomed decision.

Struggle for control of Central Bank led to kidnapping, oil field closure. Gunmen 11 July kidnapped former finance minister and prominent figure from eastern Libya, Farj Bou Matari, at Tripoli airport. Tribesmen close to Haftar 13 July shut down oil production at El Feel and El Sharara oil fields to protest Matari’s abduction, who was released 15 July. Tripoli-based oil ministry next day said production had resumed at oil sites. Kidnapping likely linked to claims that Bou Matari early July enjoyed tentative backing of rival assemblies, HSC and HoR, to replace Siddiq al-Kebir as Central Bank governor.

Political deadlock persisted despite headlines suggesting that rival factions reached agreement on election laws while selection of new interim govt remained controversial.

Stakeholders sent contradictory signals on elections and new govt. Following series of meetings in Moroccan town of Bouznika, members of 6+6 joint committee – composed of House of Representatives (HoR) and rival Tripoli-based High State Council (HSC) representatives – early June announced agreement on legal framework for presidential and parliamentary elections. HoR Speaker Aguila Saleh and head of HSC Khaled Meshri 6-7 June travelled to Morocco but failed to sign off on electoral legislation as points of contentions persisted, notably on whether military officers can run for president. Meanwhile, amid competing plans aimed at appointing new interim govt before elections take place, eastern forces commander Khalifa Haftar 16 June congratulated outcome of Morocco talks and called for formation of “technocratic” govt to oversee election preparation, suggesting that he may now favour parliament-led selection process, rather than keeping Tripoli-based PM Dabaiba in office as part of power-sharing deal. In briefing to UN Security Council, UN Envoy to Libya Abdoulaye Bathily 20 June said failure to reach agreement among major stakeholders on eligibility criteria for presidential election, linkage between presidential and parliamentary elections, and formation of new unified govt could “trigger a new crisis”.

Tripoli conducted fresh strikes in west. Dabaiba 1 June insisted drones strikes carried out late May in western Libya targeted sites used by “criminal gangs” for human trafficking, drug and fuel smuggling, denying HoR claims that strikes were aimed at “settling political scores”; Dabaiba also denied Turkish involvement in strikes. Forces loyal to Dabaiba 7-8 June conducted fresh strikes near Zuwara city, reportedly targeting fuel smuggling site.

Tensions over control of oil wealth threatened to escalate. Eastern-based PM Osama Hammad 24 June threatened to impose blockade on oil and gas facilities to prevent exports in protest at alleged unfair distribution of oil revenues by Tripoli-based authorities; 26 June said he discussed mater with Tripoli-based National Oil Corporation Chairman Farhat Bengdara.

In other important developments. Drone strikes 29 June reportedly hit Al-Kharruba airbase used by Russian paramilitary group Wagner; Tripoli-based authorities denied responsibility.