The Albanian Communist State Smuggled Cigarettes in Cooperation with the Italian Mafia

Written by Ferdinand Dervishi

 On July 25, 1982, the Albanian Navy faced the dire consequences of a tragic incident. The crew of a torpedo boat from the Sazan Island Regiment opened fire on a peaceful vessel sailing within Albania's territorial waters. This incident resulted in the death of one of the two Italian nationals on board, shaking the communist state to its core.

Enver Hoxha dressed in mafia style in black in a bar near Durrës talking to Albanian agents, December 1976
Enver Hoxha dressed in mafia style in black in a bar near Durrës talking to Albanian agents, December 1976



Initially reported as an open sea firefight, the incident mobilized not only the naval forces but also the air forces, creating widespread alarm. This violent episode, however, revealed more than just a moment of military extremism. It exposed a clandestine operation that the communist regime had kept hidden: since 1971, Albania had become part of an international cigarette smuggling network.

The contraband cigarettes, primarily Marlboro, were shipped from factories in the United States to Belgium or the Netherlands, trucked across Western Europe, and stored in Durres. From there, they were transported by fast boats to the Italian coast, feeding the demand of the Italian mafia.

Almost daily, these speedboats loaded with cigarette crates would race toward Italy, often pursued by the Guardia di Finanza's sea and air units. The construction of this smuggling route, known only to a few, began with an offer from Switzerland in 1970. A man claiming to be a Jewish survivor helped by an Albanian family during World War II proposed the idea as a form of repayment.

This tale, though intriguing, likely masked the true motive: a business plan exploiting the shortest sea route between Italy and the Balkans. This proximity enabled quick, cost-effective, and lower-risk cigarette deliveries to Italy.

Albania's profit from this operation was substantial. In January 1982 alone, the state-run enterprise Albtrans earned $134,389, projecting an annual profit of approximately $1.6 million. While the communist elite in Tirana enjoyed the revenue, the Italian mafia reaped colossal profits, leading to the rise of the Sacra Corona Unita (SCU) mafia organization in response to severe anti-smuggling measures in Naples in 1978.

The SCU, founded in 1981 by elements of the Calabrian mafia 'Ndrangheta, quickly dominated the cigarette smuggling trade, pushing out the Neapolitan Camorra. This organization, based near Brindisi and Bari, demanded increased supplies of American cigarettes, prompting a surge in contraband activity.

However, the growing number of smuggling boats caused issues for the Albanian state. Despite efforts by the Albanian Navy to manage the situation, the intervention of the Guardia di Finanza's boats and aircraft in Albanian territorial waters often led to tense encounters.

One notable incident on June 25, 1985, involved a high-speed chase where Italian finance police boats pursued the Panamanian-flagged "Katia Uno" into Albanian waters, prompting a naval response that successfully drove the Italians away.

In response to escalating incidents, Albanian authorities decided to move the cigarette smuggling operations offshore to avoid detection by foreign diplomats and spies. Despite frequent clashes with the Guardia di Finanza, the Albanian Navy maintained a cautious approach, avoiding escalation to protect the lucrative smuggling route.

The deadliest and most documented incident occurred on July 25, 1982, when an Albanian torpedo boat opened fire on an Italian speedboat, resulting in the death of Gilberto Moretti. The survivor, Picciolo Cosimo, revealed that they had displayed their cargo of Marlboro cigarettes, mistakenly believing this would identify them as smugglers and prevent further attack. However, the strict security measures, driven by State Security's fear of infiltration, led to the fatal shooting.

Cosimo was later sentenced to a year in prison for illegal border crossing, and the smuggling vessel was confiscated. Despite such incidents, the cigarette smuggling operation continued until 1991, generating up to $2 million a month in its final years. The closure of Albtrans marked the end of this illicit trade, with its remaining stock seized by the new government.

Reflecting on this period, it is evident that the profits from cigarette smuggling were squandered by the communist elite rather than benefiting the Albanian people. The cessation of this lucrative operation at a time of economic hardship is often criticized as a missed opportunity to alleviate widespread poverty.

Ultimately, the story of Albania's cigarette smuggling network is a complex tale of illicit trade, mafia influence, and the desperate measures taken by a communist state to sustain itself amidst international isolation and economic struggles.
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