Lebanon Telecoms Mark-up Threatens Migrants' Link to Jobs and Safety

A vendor assists customers inside a mobile shop in Dora, Lebanon July 9, 2022. REUTERS/Mohamed Azakir
A vendor assists customers inside a mobile shop in Dora, Lebanon July 9, 2022. REUTERS/Mohamed Azakir
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Lebanon Telecoms Mark-up Threatens Migrants' Link to Jobs and Safety

A vendor assists customers inside a mobile shop in Dora, Lebanon July 9, 2022. REUTERS/Mohamed Azakir
A vendor assists customers inside a mobile shop in Dora, Lebanon July 9, 2022. REUTERS/Mohamed Azakir

Kenyan cleaner Noel Musanga survived Lebanon's economic meltdown, waves of COVID-19 and Beirut's port blast. But when her internet provider announced rates would double, she feared her last lifeline to family and work would snap.

The freelance migrant worker already barely earned enough to survive. Now, the higher telecoms bill means she will have to ration her calls to relatives and potential employers.

"It will be like (being) in a deep hole," Musanga said in her ground-floor apartment in the densely-populated Burj Hammoud neighborhood on the edge of Beirut.

Lebanon hosts an estimated 250,000 migrant workers primarily from sub-Saharan Africa and Southeast Asia, according to the United Nations.

Their residence is usually subject to "kafala", a sponsorship system that rights groups say gives employers excessive control over workers' lives.

Lebanon's three-year financial downturn has only added to their woes, with employers abandoning domestic migrant workers in the streets as their monthly wages – between $150 to $400 – became too expensive.

Some went freelance, living on their own and taking on cleaning or nannying work to pay the bills.

But that has become harder by the day. Lebanon's currency has lost 95% of its value while food and public transportation costs have risen roughly eleven-fold.

The internet is the next big challenge.

Until this month, Lebanon's telecoms sector had continued to use the government's old peg of 1,500 Lebanese pounds to the dollar to charge for phone calls, broadband and mobile internet.

With slim revenues, the state struggled to import enough fuel to run telecoms transmitter stations, leading to cuts in coverage throughout 2021.

To reverse that trend, Lebanon’s cabinet said telecoms tariffs would be calculated based on the much weaker flexible currency rate set by the government's Sayrafa platform.

Using the government's formula, that would cause up to four-fold increases in customers' bills, according to digital rights group SMEX.

Musanga, who also volunteers as a migrant rights advocate, said that mark-up will be life-changing for vulnerable workers.

They would have to choose between paying for a home connection or a mobile one, which they would likely use less to conserve data packages.

It could also present a higher risk for workers seeking to escape abusive employers.

"All the time, I'm on the phone receiving complaints from the girls on contract who are in trouble ... So, I have to have the internet to reach them and solve all these problems," Musanga said.

The higher cost of living all-around also meant migrant workers had almost nothing left to send in remittances to their relatives back home.

"Now in Lebanon if you are here, you are wasting your time, wasting your energy ... Because everything is expensive, and you'll have nothing to save for yourself or send to your family.

So it's better to go home," she said.

The price jumps could even have an impact on the mental health of migrant workers and their families back home.

With cases of domestic violence on the rise across Lebanon since 2019, workers' families back home would be in a constant state of worry if they didn't hear from them, Kareem Nofal, communications specialist at the Anti-Racism Movement, said.

Live-in workers had relied on their phones and Wi-Fi connections to stay connected, particularly throughout the coronavirus pandemic, Tsigereda Birhanu, a 27-year-old advocate for migrant workers in Lebanon, told Reuters.

"That's their therapy," Birhanu said.

"If you don't have 3G, if you don't have internet, you are going to lose everything."



What Happens When Russian Gas to Europe Via Ukraine Stops?

FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia.  Photo: Jan Woitas/dpa-Zentralbild/dpa
FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia. Photo: Jan Woitas/dpa-Zentralbild/dpa
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What Happens When Russian Gas to Europe Via Ukraine Stops?

FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia.  Photo: Jan Woitas/dpa-Zentralbild/dpa
FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia. Photo: Jan Woitas/dpa-Zentralbild/dpa

Russian President Vladimir Putin met Slovak Prime Minister Robert Fico in the Kremlin on Sunday, a rare visit by a European Union leader to Moscow as a contract allowing for Russian gas to transit through Ukraine nears expiry.
Ukrainian President Volodymyr Zelenskiy had said on Thursday that Kyiv could consider continued transit of Russian gas, but only on condition that Moscow did not receive payment until after the war - a condition it was unlikely to accept, Reuters said.
Putin said that day that it was clear there would be no new deal with Kyiv to send Russian gas through Ukraine to Europe.
Here is what happens if Russian gas transit via Ukraine is completely turned off and whom will be affected most.
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 2018-19.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow has lost its share to rivals such as Norway, the United States and Qatar since the Russian invasion of Ukraine in 2022, which spurred 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 - which is 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.
Russia's overall gas exports via the route have held steady despite the
stoppage
of flows from Gazprom to Austria's OMV in mid-November over a contractual dispute, and legal wranglings as other buyers stepped in to buy the volumes.
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.
The Czech Republic almost completely cut gas imports from the east last year, but began 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 Turkey under the Black Sea. Turkey 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 will 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 high transit fees imposed on alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees per year from Russian gas transit.
According to Reuters calculations, Gazprom's total pipeline gas exports to Europe via all routes in 2024 have increased to 32 bcm from 28.3 bcm in 2023, when they collapsed to the lowest level since the 1970s.
Russia could earn around $5 billion on sales via Ukraine this year based on an average Russian government gas price forecast of $339 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 of EU gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it will not 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.
Hungary
has been keen to keep the Ukrainian route open, but said it would continue to receive Russian gas from the south, via the TurkStream pipeline on the bed of the Black Sea.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal.
A senior source at Azeri energy company SOCAR told Reuters on Friday that Moscow and Kyiv have failed to agree on the deal brokered by Azerbaijan to continue Russian gas exports to Europe via Ukraine.