Energy-deprived and financially struggling, Lebanon has reportedly lost tens of millions of dollars importing Russian fuel, which is under Western sanctions. Authorities suspect that falsified shipping documents were used to conceal the fuel’s origin in what appears to be a fraudulent scheme.
Relying on leaked documents, shipping papers, vessel-tracking data and interviews with oil analysts, The National can reveal that international traders potentially overbilled Lebanon by up to 70 per cent above value for its Russian fuel imports, allowing them to pocket hefty pay-offs in contravention of the Group of Seven (G7)'s sanctions on Russia, News.Az reports citing foreign media.
The National reviewed shipping manifests that listed several cargoes as coming from Turkey or Egypt. But confidential documents showed that authorities suspect the papers were amended to conceal that the fuel came from Russia, citing “discrepancies” with tracking data and asking the public prosecutor to investigate suspected “falsification”.
One of the shipments under investigation by Lebanese authorities attempted to slip out of the country’s waters on Saturday after turning off its trackers, but was stopped by the Lebanese armed forces, which detained the crew.
The G7 imposed strict sanctions against Russia in response to its war in Ukraine, targeting its economy, including the oil industry.
Sanctions do not prohibit buying oil from Russia outright, but have placed a ceiling on the price it can sell it. Since 2023, the price cap for fuel oil has been set at $45 a barrel, well below market levels, to limit Moscow’s profits.
Leaked documents show that traders sold Russian fuel oil to Lebanon well above the cap allowed by G7 sanctions, skimming off millions on each shipment and possibly evading sanctions.
“Most sanctions regulations also prohibit foreign persons from causing someone to violate sanctions,” said David Tannenbaum, director at Blackstone Compliance Services, a Washington-based consulting firm that provides the maritime industry with sanctions advice.
“Therefore, anyone involved in such transactions, such as the shipowners or the goods traders, could be held accountable,” Mr Tannenbaum, who has worked with the US Treasury’s Office of Foreign Assets Control (OFAC), added.
Asked about the Russian fuel imports, Lebanon’s judiciary said it could not comment as there is an ongoing investigation into the matter.
Lebanese customs said it had opened a separate investigation weeks ago into “uncertainties” about fuel imports, but declined to provide further details.
The investigations were opened after Lebanese engineer Fawze Mechleb, who filed complaints with the judiciary and customs that traced dozens of tankers arriving in Lebanon to Russia.
In his complaints, he alleged that traders routinely altered shipping manifests to disguise sanctioned Russian fuel as Mediterranean, thereby overcharging Lebanon and breaking international and local regulations.
“It's been two months since I first flagged the case. The authorities have so far failed to take any firm action,” he told The National.
