Smuggling from Lebanon to Syria Grows

An elderly man rests outside after buying a bag of subsidized flatbread, as others continue to wait in a queue, in the Lebanese capital Beirut on July 29, 2022, amid a shortage of wheat supplies. (AFP)
An elderly man rests outside after buying a bag of subsidized flatbread, as others continue to wait in a queue, in the Lebanese capital Beirut on July 29, 2022, amid a shortage of wheat supplies. (AFP)
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Smuggling from Lebanon to Syria Grows

An elderly man rests outside after buying a bag of subsidized flatbread, as others continue to wait in a queue, in the Lebanese capital Beirut on July 29, 2022, amid a shortage of wheat supplies. (AFP)
An elderly man rests outside after buying a bag of subsidized flatbread, as others continue to wait in a queue, in the Lebanese capital Beirut on July 29, 2022, amid a shortage of wheat supplies. (AFP)

Smuggling between Lebanon and neighboring Syria has intensified in recent weeks.

Smugglers have expanded their operations to include not only fuel, but livestock, vegetables and cosmetic surgery instruments and supplies.

The smugglers are active along the porous 375-km border between Lebanon and Syria.

The smugglers are taking advantage of the US Caesar Act that prevents companies from importing goods to Syria. They are also exploiting the difference in prices between Lebanon and Syria, especially imports that are not manufactured in Syria.

Security sources in eastern Lebanon told Asharq Al-Awsat that smugglers have expanded their operations beyond their known routes in northeastern Lebanon.

They have now resorted to uninhabited areas that stretch from Yanta to Wadi al-Ashaer, Shebaa-Bint Jinn in the South, Lebanon’s eastern mountain range, Qosaya, Ain Zabad, Nahle, Arsal, Flita and the northern Bekaa in Lebanon’s far northeast.

The source counted eleven illegal crossings that span 22 kms.

It said smuggling has been growing since the Lebanese army completed its operation against extremists on the border in 2017 and has now peaked.

Civilians blamed the lax security measures and Lebanese state’s inability in securing the entire border for the rise in illegal activity.

The army had closed three illegal crossings in the past and continues to monitor them.

The Lebanese Central Bank’s subsidizing of several basic goods in 2021 was a main factor in driving up the smuggling.

Lebanon last year faced a severe shortage in fuel due to the smuggling to Syria where it is sold for a higher price and smugglers gain a higher profit.

So far in 2022, the smuggling of fuel has not risen to the heights of 2021, but that could change with Damascus raising the price of a tank of gas from 1,100 to 2,500 Syrian pounds.

The smuggling of flour and bread has been felt in Lebanon where a shortage last week led to long queues at bakeries and rise in a packet of bread to 30,000 Lebanese pounds, or a dollar. The government has since addressed the crisis.

Cigarettes are also in high demand in Syria. Smugglers have been sending over Lebanese brands and merchants have started to price them in dollars. A packet could cost as much as half a dollar. Foreign brands are priced higher and are also available depending on the demand.

The smuggling also includes Lebanese oils given the rise in oil prices worldwide. Cosmetic surgery supplies, such as Botox shots and fillers, are also being smuggled because Syria is barred from importing them due to the Ceasar Act.



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.