Lebanese authorities seize millions over russian sanctions evasion scandal

Lebanese authorities have seized millions of dollars linked to an alleged scheme involving imports of sanctioned russian fuel and falsified documents, according to informed sources and documents reviewed by The National.

Several investigations into the suspicious shipments are under way, with charges of bribery and falsified documents filed in one case that was referred to the first investigating judge in Beirut on Wednesday, a judicial source told The National.

Since 2023, international oil companies have allegedly sold russian fuel to Lebanon in breach of western sanctions, using falsified shipping documents to misrepresent its origin as Mediterranean and pocketing millions of dollars in premiums.

Asked about the alleged scheme, a spokesman for Lebanon’s Energy Ministry said “all the measures are taken”, without providing details

US and EU sanctions do not ban the purchase of oil from russia outright but have capped the price at which it can be sold to limit Moscow’s profits.

The ceiling for fuel oil has been set at $45 a barrel since 2023, well below market rates. But documents seen by The National show that Lebanon has been paying market price for russian fuel imports, losing about $5 million to $7 million on each shipment.

It remains unclear whether Lebanese authorities knowingly imported overpriced shipments and whether the millions in payoffs were shared among those involved in the transactions.

The oil was purchased to fuel power plants operated by the state utility Electricite du Liban, which has been in crisis for decades. It operates at a loss and is able to supply electricity for only a few hours a day - a situation widely blamed on mismanagement and corruption.

Lebanon’s Energy Minister Joe Saddi has ordered the freezing of performance bonds for the implicated companies, including Iplom International and Sahara Energy Resources, each worth several million dollars, according to informed sources.

Performance bonds are guarantees that companies present to buyers to assure a contract's completion.

Lebanese customs have also seized a suspicious shipment supplied by Sahara on the vessel Hawk III, along with the ship itself.

The Hawk III delivered 33,000 tonnes of fuel oil in August that authorities suspect was russian, but disguised as Turkish to inflate prices.

The shipment was sold for about $18 million, according to documents seen by The National – about $7 million above the price cap for Russian fuel oil.

The vessel tried to slip out of Lebanon’s waters two weeks ago but was stopped 55km from shore in an operation involving a naval patrol, a maritime commando unit and the air force.

According to internal documents, a customs investigation found that “the imported fuel is undoubtedly of russian origin” and that the shipping document submitted was fraudulent “beyond any doubt”.

“The vessel’s entry into Beirut Port from Mersin is nothing but a clear deceptive manoeuvre to hide the russian source and mislead the Lebanese authorities into believing it was of Turkish origin,” the document read.

Mersin is the Turkish port where the Hawk III stopped on its way to Lebanon.

Financial prosecutor Maher Cheaito has also filed charges of bribery and falsified documents in a separate investigation into the Hawk III, which he referred on Wednesday to the first investigating judge in Beirut.

The court will hold hearings to question the three people detained in the case.

Asked for comment by The National, Sahara Energy said its “contractual obligations for the recent fuel delivery to Lebanon were completed in full”.

“The company has no operational control over the vessel. Sahara is co-operating fully with the relevant authorities and will not be providing further comment while the investigation is continuing,” it added.

Iplom did not reply to The National's request for comment.

Source: The National