9 Years of War in Syria: $530 Billion in Losses, 40% of Infrastructure Destroyed

Children ride in carts past a damaged building on the first day of the Eid al-Fitr holiday in the opposition-held Idlib city in northwest Syria, May 24, 2020. (Reuters)
Children ride in carts past a damaged building on the first day of the Eid al-Fitr holiday in the opposition-held Idlib city in northwest Syria, May 24, 2020. (Reuters)
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9 Years of War in Syria: $530 Billion in Losses, 40% of Infrastructure Destroyed

Children ride in carts past a damaged building on the first day of the Eid al-Fitr holiday in the opposition-held Idlib city in northwest Syria, May 24, 2020. (Reuters)
Children ride in carts past a damaged building on the first day of the Eid al-Fitr holiday in the opposition-held Idlib city in northwest Syria, May 24, 2020. (Reuters)

Nine years of war have cost Syria more than 530 billion dollars, vastly exceeding estimates by United Nations and Syrian experts two years ago. Forty percent of the country’s infrastructure has been destroyed, incurring losses of 65 billion dollars, while poverty reached 86 percent of Syria’s 22 million people.

The fatalities from the conflict have reached 690,000, including 570,000 who were directly killed in the fighting. Thirteen million people have been forced to leave their homes for safety and 2.4 million children are out of school.

These were some of the alarming findings of a report prepared by the Syrian Center for Policy Research (SCPR). Co-founder of the center, Rabie Nasser told Asharq Al-Awsat Tuesday that confronted with these numbers, “we cannot talk about Syria’s reconstructions without first tackling the cause of the conflict, primarily the injustice tied to political, economic and social injustice.”

“Overcoming the conflict is more important than construction,” he added. “This can be achieved through a long-term and gradual process that eliminates injustice and allows society to remove traces of the conflict and build a new future.”

Two years ago, Russian officials said the war cost 400 billion dollars. No doubt today’s new figures pose a major challenge for plans to rebuild Syria, especially given the internal situation in the country and the global economic crises caused by the novel coronavirus pandemic.

One researcher said: “These figures make reconstruction more of a pipedream.”

Economic injustice

The conflict led to the emergence of different economies within the “fragmented state”. A common strategy used by the various warring parties was the misuse of economic resources to fuel the conflict rather than productive economic activities, said the report.

The resources were used to “sustain the violence”, it noted.

Up until the end of 2019, the conflict cost Syria 530.1 billion dollars or 9.7 times the country’s GDP in 2010. The figure covers the loss in local production, estimated at 420.9 billion dollars and a rise in military spending by around 37.8 billion dollars. Government subsidies dropped from 20.2 percent in 2011 to 4.6 percent in 2019.

The Syrian pound also took a hit. It traded at 46 pounds to the dollar in 2011 and lost 43 percent of its value between July 2018 and September 2019. It continued to drop even further between October 2019 and January 2020. The pound now trades at 1,700 to the dollar. The labor force was also largely depleted by the war, dropping from 5.184 million to 3.058 million worker. Unemployment rose from 14.9 to 42.3 percent. The labor market lost 3.7 million jobs.

Social injustice

Syria’s population rose 0.9 percent in 2018 and 1.1 percent in 2019 to reach 19.584 million people. The conflict has led to the displacement of 5.6 million people to Lebanon, Turkey, Jordan and other countries. As of August 2019, the internally displaced are estimates at 6.14 million, the highest such figure in the world.

Millions of Syrians continue to lose years of academic education. According to 2019 estimates, 2.4 million children between the ages of 5 and 17 are out of school. Nasser described the situation as a “disaster” because millions of children will now suffer from a lack of skills and knowledge, as well as the traumas of war.

The involvement of various parties in the conflict has led to the emergence of six different curricula adopted at schools throughout the country.

The report found that 4.4 deaths were reported for each 1,000 people in 2010. That rose to 9.9 per 1,000 and 7 to each 1,000 in 2019. Some 570,000 people were killed by the direct fighting and 120,000 by the lack of medical equipment and necessary living conditions.

Poverty reached its peak at 89.4 percent at the end of 2016 and it has since dropped to 86 percent in 2019. The stifling economic crisis in Lebanon has only exacerbated the economic situation in Syria. The country is in store for even more hardships as the United States moves to implement the Caesar Act in mid-June.

European countries and the US have been demanding the implementation of a political solution in line with United Nations Security Council resolution 2254 to end the crisis. On the other end, Moscow and Damascus have been demanding that sanctions be lifted off the regime. A donor conference on Syria is scheduled to be held in Brussels at the end of June, which may offer the people a glimmer of hope.



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
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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.