Russia to study rebuilding Beirut's destroyed silos


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A Russian business delegation met Lebanese officials on Monday to discuss plans to rebuild the grain silos destroyed last year in a massive explosion at Beirut's port, a Lebanese minister said.

The visit by the Russian team, including officials from the country's Hydro Engineering and Construction company, comes as Lebanon is going through the worst economic crisis in its modern history.

Nearly 3,000 tonnes of ammonium nitrate, a highly explosive material used in fertilisers, had been improperly stored in the port for years. The nitrate ignited on August 4, causing a catastrophic blast that killed 211 people and injured more than 6,000, devastating nearby neighbourhoods.

A government-commissioned study after the explosion said the 50-year-old silos could collapse at any moment and should be demolished. Several countries are said to be interested in rebuilding the port and the surrounding areas, including Turkey, Germany and China.

Lebanon's caretaker Public Works and Transpiration Minister Michel Najjar said the Russian delegation expressed a desire to co-operate and would offer technical support for the silos repair at the port of Beirut.

Mr Najjar said the Russians were also interested in building a silo in the port of the northern city of Tripoli.

The Russian team will spend three days at each facility “and they will study the possibility of building new grain silos", he said.

In April, representatives of several German companies outlined a multi-billion-dollar plan to rebuild the port of Beirut and surrounding neighbourhoods. Germany’s consortium, led by Hamburg Port Consulting and Colliers, was the first to visit Lebanon with a plan in hand that they presented to Lebanese officials.

In 2019, Lebanon signed a deal with Russia’s largest oil company, Rosneft, to upgrade and operate storage installations in Tripoli. The deal made Rosneft manage storage operations.

Lebanon protests – in pictures 

  • Drivers wait in a long queue for fuel in Beirut, Lebanon, where the caretaker prime minister on Friday granted approval to allow fuel imports to be financed at a rate higher than the official exchange rate, effectively reducing fuel subsidies that have been in place for decades. AP Photo
    Drivers wait in a long queue for fuel in Beirut, Lebanon, where the caretaker prime minister on Friday granted approval to allow fuel imports to be financed at a rate higher than the official exchange rate, effectively reducing fuel subsidies that have been in place for decades. AP Photo
  • A woman in a queue for petrol in Beirut uses the time to work on her laptop. AP Photo
    A woman in a queue for petrol in Beirut uses the time to work on her laptop. AP Photo
  • Drivers queue for fuel as traffic flows past on the Tripoli-Beirut motorway in the coastal city of Batroun. The head of Hezbollah, Lebanon's powerful Shiite movement on June 8 said that the country could soon be forced to rely on fuel imports from Iran. AFP
    Drivers queue for fuel as traffic flows past on the Tripoli-Beirut motorway in the coastal city of Batroun. The head of Hezbollah, Lebanon's powerful Shiite movement on June 8 said that the country could soon be forced to rely on fuel imports from Iran. AFP
  • An anti-government protester in Jal El Dib, in north Beirut, next to Lebanese soldiers during a protest against power cuts, high cost of living and low purchasing power of the Lebanese pound. Protesters, closed the streets with rubbish bins and burning tyres to express their anger at the growing economic crisis, as well as the failure of political leaders to form a government after months of deadlock. EPA
    An anti-government protester in Jal El Dib, in north Beirut, next to Lebanese soldiers during a protest against power cuts, high cost of living and low purchasing power of the Lebanese pound. Protesters, closed the streets with rubbish bins and burning tyres to express their anger at the growing economic crisis, as well as the failure of political leaders to form a government after months of deadlock. EPA
  • Protesters block a motorway in north Beirut, Lebanon, where state-provided electricity has reached record-low levels. EPA
    Protesters block a motorway in north Beirut, Lebanon, where state-provided electricity has reached record-low levels. EPA
  • A traffic jam in Jal El Dib, Beirut, caused by protesters expressing their anger at the growing economic crisis. EPA
    A traffic jam in Jal El Dib, Beirut, caused by protesters expressing their anger at the growing economic crisis. EPA
  • Traffic in Beirut backed up by a protest against the Lebanese government's inability to find a way out of the economic crisis crippling the country. EPA
    Traffic in Beirut backed up by a protest against the Lebanese government's inability to find a way out of the economic crisis crippling the country. EPA
  • A Lebanese soldier tries to re-open the main motorway leading to Rafik Hariri International Airport that was blocked by anti-government protesters. EPA
    A Lebanese soldier tries to re-open the main motorway leading to Rafik Hariri International Airport that was blocked by anti-government protesters. EPA
  • Burning tyres block the road to Rafik Hariri International Airport during anti-government protests in Lebanon. EPA
    Burning tyres block the road to Rafik Hariri International Airport during anti-government protests in Lebanon. EPA
  • Lebanese soldiers dismantle a burning roadblock set up by anti-government protesters in Beirut. EPA
    Lebanese soldiers dismantle a burning roadblock set up by anti-government protesters in Beirut. EPA
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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