Beirut Streets Get Caught between Poverty, Epidemic

A street vendor pushes his cart in Shatila Palestinian refugee camp, wearing a face mask to try to protect against the spread of COVID-19, in Beirut suburbs, Lebanon, March 30, 2020. (Reuters)
A street vendor pushes his cart in Shatila Palestinian refugee camp, wearing a face mask to try to protect against the spread of COVID-19, in Beirut suburbs, Lebanon, March 30, 2020. (Reuters)
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Beirut Streets Get Caught between Poverty, Epidemic

A street vendor pushes his cart in Shatila Palestinian refugee camp, wearing a face mask to try to protect against the spread of COVID-19, in Beirut suburbs, Lebanon, March 30, 2020. (Reuters)
A street vendor pushes his cart in Shatila Palestinian refugee camp, wearing a face mask to try to protect against the spread of COVID-19, in Beirut suburbs, Lebanon, March 30, 2020. (Reuters)

Dozens of young men and children gather near a small entrance to the Burj al-Barajneh refugee camp, where they chat and play, while a tuk-tuk vehicle, flying a small Palestinian flag, heads to the main road, with a number of boys and girls on it chanting a famous song.

Members of the Lebanese army at the two checkpoints, located near the camp and at the entrance to the southern suburb, do not show any reaction to the sight of the tuk-tuk crossing between them.

In the inner roads of Haret Hreik and Burj al-Barajneh, life seems to be normal, with only few people wearing face masks. Motorcycles race between cars to pass through narrow streets, while the celebration of religious and social occasions have never stopped.

Similar scenes are seen in Burj Hammoud, the Armenian majority district connected to Beirut. Most shops opened their doors to customers as in normal days.

The activity is not limited to food stores and restaurants. Apparently, apparel shops, mobile phones and auto parts are operating at their usual pace.

But as you walk further towards central Beirut, you find silence prevailing over empty streets, closed shops and banks protected with metal shields for fear of angry depositors, who have seen their money evaporate under strict financial restrictions.

Emptiness in the commercial center is suddenly struck with the sight of a large crowd in a luxury restaurant located between Bab Idriss and Wadi Abu Jameel. It looks like as if its clients were not affected by poverty and the epidemic, and they are still able to visit these exclusive places, and let their drivers wait for them in their expensive cars.

The heart of Beirut, Hamra Street, was hit with a severe blow. Most of its shops are closed, while its famous cafes are almost empty due to the social distancing measures, on the one hand, and the difficulty of working within the specified hours, on the other.

It is too early - perhaps - to draw economic and social conclusions on the double disaster that struck Lebanon over the past months. The combination of the economic collapse and the political crisis with the spread of the coronavirus disease leaves a very harsh impression on those who are used to wandering the streets of the capital and its suburbs on less miserable days.

However, a rapid assessment of the above observations predicts the image of the next phase. In other words, the sectors that marked the economy - but rather society, politics and culture - will fall in a kind of clinical death. The banking sector has lost its most important component: confidence. This will not be recovered without major efforts that no one seems to be heading towards.

Tourism, which has been dying for years, is practically ruined. Tourism institutions, even those that have endured the risks and destruction of the civil war, announce their final closure. The same applies, even to a lesser extent, to education and hospital establishments, and durable and consumer goods stores.

Confronted with poverty and the epidemic, the Lebanese stand unable to protest and reject, after they exhausted the peaceful means of objection while the country’s politicians and decision-makers have not batted an eye and seem to be living on a different planet.



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.