Chaos, Confusion Obstruct Distribution of Compensation for Beirut Port Explosion Victims

A man works inside a school which was damaged due to the explosion at the port area, in Beirut. (Reuters)
A man works inside a school which was damaged due to the explosion at the port area, in Beirut. (Reuters)
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Chaos, Confusion Obstruct Distribution of Compensation for Beirut Port Explosion Victims

A man works inside a school which was damaged due to the explosion at the port area, in Beirut. (Reuters)
A man works inside a school which was damaged due to the explosion at the port area, in Beirut. (Reuters)

More than three months after the Beirut Port explosion, the affected residents in the surrounding areas are complaining that they have not received any compensation from the state to help them repair their houses.

While many resorted to charities and NGOs offering assistance, others starting fixing their homes at their own expense ahead of winter.

The Lebanese army has recently began distributing compensation from the state, within a specific framework, said Brigadier General Sami Howayek from the Joint Operations for Disaster Recovery Command Center.

In remarks to Asharq Al-Awsat, Howayek revealed that the army “started distributing financial compensation about a week ago, which will cover about 10,000 housing units, equivalent to approximately 17 percent of the number of damaged units.”

He explained that a survey of the affected areas determined the number of damaged units at 62,087 houses, 14,848 stores and 5,251 commercial companies, in addition to a number of educational institutions, places of worship, hotels, restaurants and others.

According to Howayek, the total value of compensation earmarked to those affected by the Aug. 4 explosion amounts to 100 billion Lebanese pounds (66 million dollars according to the official exchange rate, and a little more than a million at the parallel market rate).

The amount was transferred from the High Relief Commission to the Army Treasury, based on the decision of caretaker Prime Hassan Diab.

He added that army teams would conduct field visits to inspect the repair works.

Meanwhile, a number of citizens, whose houses were damaged by the explosion, are complaining about the large number of associations and agencies that visited them to assess the damage, without these associations returning to compensate for their losses.

“Some bodies, including international associations and organizations, recently started repairing a number of damaged homes and paying sums of money to the citizens,” Howayek said.

He emphasized that the army, through its constant contact with the associations, was seeking to “control their work as much as possible,” and was also asking citizens to “inform them of any suspected association to pursue it according to the laws in force, especially if it was not registered with the Ministry of Interior.”



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.