Increased Activity of Fuel Smugglers from Lebanon to Syria

A general view shows Al-Masnaa border crossing between Lebanon and Syria January 5, 2015. REUTERS/Mohamed Azakir
A general view shows Al-Masnaa border crossing between Lebanon and Syria January 5, 2015. REUTERS/Mohamed Azakir
TT

Increased Activity of Fuel Smugglers from Lebanon to Syria

A general view shows Al-Masnaa border crossing between Lebanon and Syria January 5, 2015. REUTERS/Mohamed Azakir
A general view shows Al-Masnaa border crossing between Lebanon and Syria January 5, 2015. REUTERS/Mohamed Azakir

Syria’s fuel crisis has opened the door for Lebanese exports of this vital commodity, either legally or through smuggling from uncontrolled crossings.

While some Syrian traders import gasoline from Lebanon at a rate of one million liters per day to cover a quarter of the daily consumption, about 100,000 liters are smuggled daily, passing through Al-Masnaa border crossing, without any supervision or control, according to the head of gas stations owners’ syndicate, Sami Braks.

In June last year, then-Minister of State for Anti-Corruption Affairs Nicolas Tueni announced that his ministry “had been informed by reliable sources of the smuggling of quantities of gasoline from Syria into Lebanon, which amounted to around one million liters a day.”

Smuggling across the Syrian-Lebanese border is relatively easy, as some houses and properties are located on Syrian and Lebanese territories at the same time.

Speaking on condition of anonymity, a security officer told Asharq Al-Awsat that more than 50 Syrian tankers used for the transport of fuel were seen in the Lebanese village of Bhamdoun, heading towards Syria through Al-Masnaa crossing. He noted that those were operating under contracts between Lebanese companies and the Syrian government.

“Illegal smuggling is another matter,” the officer said.

He noted that the Lebanese laws did not prevent the export of fuel or other commodities.

“The customs administration has nothing to do with any Lebanese goods that pass to Syria, as long that they do not include prohibited merchandise, such as drugs,” he stated.

“But if the commodities were seized at illegal crossings, the security and military forces should arrest the smugglers,” he explained.

A Syrian citizen, who returned from Aleppo to Beirut a few days ago, told Asharq Al-Awsat that small cars and trucks passed daily between Syria and Lebanon, with hidden tanks used for fuel smuggling.

He added that obtaining “legal” fuel sometimes required waiting three to four days at petrol stations, where public transport drivers receive 20 liters of fuel and the owners of private vehicles receive only 10 liters.

“Smugglers usually enjoy the protection of powerful figures,” the citizen said, adding that Syrian “taxi drivers go to Lebanon more than once a day, even if they had one passenger, only to fill their tanks with gasoline so they can earn their living.”



What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
TT

What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.