Exclusive – Will New US Sanctions Target Hezbollah’s Top Lebanese Allies?

Lebanese PM Saad Hariri meets US Secretary of State Mike Pompeo in Washington. (Dalati & Nohra)
Lebanese PM Saad Hariri meets US Secretary of State Mike Pompeo in Washington. (Dalati & Nohra)
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Exclusive – Will New US Sanctions Target Hezbollah’s Top Lebanese Allies?

Lebanese PM Saad Hariri meets US Secretary of State Mike Pompeo in Washington. (Dalati & Nohra)
Lebanese PM Saad Hariri meets US Secretary of State Mike Pompeo in Washington. (Dalati & Nohra)

“I am not the one who decides US sanctions against Hezbollah. The US administration is clear in how to handle this issue.”

This is how Lebanese Prime Minister Saad Hariri responded to all criticism against his recent visit to the United States. The criticism was mainly from Free Patriotic Movement MPs and their allies over the premier’s talks with American officials who are perceived as spearheading sanctions against Hezbollah. Most notable of those officials are Secretary of State Mike Pompeo and Assistant Secretary for Terrorist Financing in the United States Department of the Treasury Marshall Billingslea.

Former Lebanese Ambassador to Washington Antoine Chedid told Asharq Al-Awsat that Hariri’s visit was significant given the meetings he held with various officials, specifically Pompeo and senior Treasury officials and World Bank President David Malpass.

The visit was deemed a success, said Chedid, after Pompeo stressed the need to preserve the stability of Lebanon’s economic and security institutions despite his clear objectives to impose sanctions against Hezbollah. The official’s remarks reveal that Hariri “succeeded in separating the Lebanese state, its security and political institutions, and the banking sector from Hezbollah. This is no easy feat.”

The former envoy added that US sanctions against Iran and Hezbollah are being discussed on a daily basis by the Washington administration and they are not swayed by opinions or dictates.

Close allies

It is also no secret in Lebanon that new sanctions could target top allies to Hezbollah. A senior banking official told Asharq Al-Awsat that the US Treasury may sanction FPM members. He added, however that this is yet to be confirmed. He also said Billingslea has accused FPM chief and Lebanese Foreign Minister Jebran Bassil of exploiting his position to protect Hezbollah.

Moreover, the US official expressed concern that Lebanese banks may shirk their obligations to comply with the sanctions, especially those located in areas where Hezbollah wields influence.

Repercussions of sanctions

Economic researcher and strategist, Professor Jassem Ajaka that speculation has been rife about the new wave of sanctions, but it is “certain” that they will include top Lebanese officials who are Hezbollah members and their allies. They will also target businessmen, whom Washington believes hold the keys to the party’s financial dealings.

This will pave the way to two scenarios, said Ajaka.

The first sees senior politicians being targeted. An American administration official had previously said that politicians in Lebanon hold the vast majority of the country’s wealth, so in order to impose any policy change, one must slap sanctions on them. Indeed, Washington had taken a step in that direction by blacklisting earlier this year two lawmakers. Lebanon will be confronted with a major hurdle, however, when the US blacklists a minister, making it impossible for the government to work with him.

Officials in Washington themselves are conflicted over whether to take this route, said Ajaka. Sanctioning top Lebanese figures will escalate the confrontation between Beirut and Washington. It also undermines the significance the US has placed on Lebanon in its Middle East strategy. Some American officials speculate that senior Lebanese politicians are deliberately escalating their rhetoric to force Washington into a confrontation, which is why Ajaka ruled out this scenario at the moment.

The second scenario, he remarked, sees imposing sanctions on lower ranked politicians or figures who work in the shadows and who are members of Hezbollah and its allied parties. These figures control the finances of their parties. According to the American view, this strategy targets Hezbollah’s allies more than the party itself with the aim of driving a wedge between them.

The economic and financial impact will be the same in either scenario, remarked Ajaka. They will both hamper the financing of the CEDRE pledges. They may not find any financers at all if the US believes that these parties would benefit from them. Washington could choose to pressure the dollar bonds market, which in turn will lead to popular disgruntlement against these parties and consequently affect the results of the next parliamentary elections.

It appears that Lebanon is heading towards financial and economic ruin, should the US so decide, transforming it into another Iran, Syria or Venezuela.

Hariri visited the US after obtaining information that dozens of Lebanese officials will be targeted by sanctions. The premier is concerned that ministers in his cabinet may be among them, which may lead to the collapse of the government. It appears, however, that the Americans have given him “temporary” assurances that this will not take place.



What Has Assad’s Fall Revealed about the Captagon Drug Trade in Syria?

 A Syrian member of the opposition shows amphetamine pills known as Captagon hidden inside an electrical component at a warehouse where the drug was manufactured before the fall of Bashar al-Assad's government at a facility in Douma city, outskirts of Damascus, Syria, Friday, Dec. 13, 2024. (AP)
A Syrian member of the opposition shows amphetamine pills known as Captagon hidden inside an electrical component at a warehouse where the drug was manufactured before the fall of Bashar al-Assad's government at a facility in Douma city, outskirts of Damascus, Syria, Friday, Dec. 13, 2024. (AP)
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What Has Assad’s Fall Revealed about the Captagon Drug Trade in Syria?

 A Syrian member of the opposition shows amphetamine pills known as Captagon hidden inside an electrical component at a warehouse where the drug was manufactured before the fall of Bashar al-Assad's government at a facility in Douma city, outskirts of Damascus, Syria, Friday, Dec. 13, 2024. (AP)
A Syrian member of the opposition shows amphetamine pills known as Captagon hidden inside an electrical component at a warehouse where the drug was manufactured before the fall of Bashar al-Assad's government at a facility in Douma city, outskirts of Damascus, Syria, Friday, Dec. 13, 2024. (AP)

Since the fall of former Syrian President Bashar al-Assad, industrial-scale manufacturing facilities of Captagon have been uncovered around the country, which experts say helped flourish a $10 billion annual global trade in the highly addictive drug.

Among the locations used for manufacturing the drug were the Mazzeh air base in Damascus, a car-trading company in Latakia and a former potato chips factory on the outskirts of Damascus.

The factory that once produced the crunchy snack in the suburb of Douma under the name, Captain Corn, was seized by government forces in 2018.

"Assad’s collaborators controlled this place. After the regime fell... I came here and found it on fire," Firas al-Toot, the original owner of the factory, told The Associated Press. "They came at night and lit the drugs on fire but couldn’t burn everything."

"From here, Captagon pills emerged to kill our people," said Abu Zihab, an activist with Hayat Tahrir al-Sham, the main group now ruling the country, as his group gave access to journalists to the site.

Syria's nearly 14-year-old civil war fragmented the country, crumbled the economy and created fertile ground for the production of the drug. Militias, warlords and the Assad government transformed Captagon from a small-scale operation run by small criminal groups into a billion-dollar industrial revenue stream.

The recent ousting of Assad has disrupted these networks and has given a closer look at its operations — revealing the workings of a war economy that sustained Assad’s power over Syria. Experts say the change in Syria might create an opportunity to dismantle the Captagon industry.

How did Syria build its Captagon empire?

Captagon was first developed in Germany in the 1960s as a prescription stimulant for conditions like narcolepsy. It was later outlawed due to heart issues and its addictive properties.

Its amphetamine-like effects made it popular in the Middle East among both elites and fighters, as it enhanced focus and reduced fatigue.

Assad's government recognized an opportunity in the cheaply manufactured drug amid Syria’s economic turmoil and the heavy sanctions imposed on it.

Captagon is produced through a simple chemical process that involves mixing amphetamine derivatives with excipients to form tablets, typically in makeshift labs.

The Captagon trade began industrializing around 2018-2019 as the Assad regime — and other armed groups in Syria -- invested in production facilities, warehouses and trafficking networks. This allowed Syria to emerge as the largest producer of Captagon globally, with some production also occurring in Lebanon.

Most seized consignments of Captagon originated from Syria, according to data by the New Lines Captagon Trade Project, an initiative of the New Lines Institute think tank.

Evidence of the Assad regime’s sponsorship of the Captagon industry is overwhelming, the report published in May said. The Security Office of the 4th Armored Division of the Syrian Arab Army, headed by Bashar al-Assad’s brother Maher oversaw operations and created a coordinated production system, the report added.

Where and how was Captagon smuggled?

Captagon was smuggled across the border using various methods, hiding Captagon in trucks, cargo shipments and goods. Some shipments are concealed in food, electronics and construction materials to evade detection.

The primary smuggling routes were Syria’s porous borders with Lebanon, Jordan and Iraq, from which the drug is distributed throughout the region. Some were also shipped from Latakia port.

In Lebanon, the Captagon trade has flourished, particularly near the Syrian border and in the Bekaa Valley. Lebanese authorities struggled to curb the flow of Captagon from Syria, which analysts say was facilitated by the Hezbollah group, a key Assad ally.

Following the discovery of crates of fruit meticulously packed with bundles of the drug hidden among pomegranates and oranges, Saudi Arabia and the UAE implemented bans on Lebanese agricultural products.

Captagon has also found its way into international markets, reaching as far as Southeast Asia and parts of Europe.

How much revenue did it produce for the Assad regime?

The annual global trade in Captagon has an estimated value of $10 billion, with the ousted Assad family's annual profit reaching around $2.4 billion, according to Caroline Rose, director of the New York-based New Lines Institute Captagon Trade Project.

"Seeing the uncovering of so many industrial-scale facilities affiliated with the regime was shocking but not surprising. There was extensive evidence linking key regime-aligned cronies and Assad family members to the trade," said Rose, whose organization tracks all publicly recorded Captagon seizures and lab raids. The discovery of the facilities, she said, confirmed "the concrete relationship between Captagon and the former regime."

The exact number of factories in Syria remains unclear, but experts and HTS members estimate that there are likely hundreds spread throughout the country.

The future of Captagon in post-Assad Syria

Assad has turned Syria into "the largest Captagon factory in the world," HTS leader Ahmad al-Sharaa stated in a victory speech at Damascus’s Umayyad Mosque on Dec. 8. "Today, Syria is being cleansed, thanks to the grace of Almighty God."

While Assad and his circle may have been the primary beneficiaries, there is also evidence that Syrian opposition groups were involved in drug smuggling, opposition groups, local militias and organized crime networks manufactured and smuggled the drug to finance their operations, analysts say.

"Likely, we will see a short-term supply reduction in the trade, with a decline in the size and frequency of seizures as industrial-scale production is largely halted. However, criminal actors are innovative, likely seeking out new locations to engage in production and smuggling, particularly as demand levels remain stable," Rose said.

They may also "seek out alternative illicit trades to engage in instead," she said.

In addition to dismantling the Captagon trade, the country's transitional government should "establish programs for economic development that will incentivize Syrians to participate in the country’s formal, licit economic sphere," Rose said.