Society 14:55 24/10/2014

Islamic State oil revenue averages $1 mln per day - US officials

According to US officials’ estimates, the Islamic State generates an income of $1 million a day from black market oil sales, which the extremists extract from territory they control in Iraq and Syria, as well as other sources of financing like bank robberies, looting of antiquities, human trafficking and extortion of local businesses and persons, RIA Novosti reports.

“With the important exception of some state-sponsored terrorist organizations, ISIL is probably the best-funded terrorist organization we have confronted,” Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen said, according to a statement by the US Treasury Department. The data further suggests that external sources of funding play only a minor role in sustaining the terrorist organization.

The currently available methods of preventing the funding of international terrorism are not applicable is the case of the Islamic State, Mr. Cohen said, as the militants do not move money across national borders. “ISIL derives a relatively small share of its funds from deep-pocket donors, and thus does not, today, depend principally on moving money across international borders. Instead, ISIL obtains the vast majority of its revenues through local criminal and terrorist activities,” he said. This means the international community has to introduce new measures to undermine the organization’s finances.

The Islamic State sells oil "at substantially discounted prices” on the black market via middlemen in Turkey, Iraqi Kurds and the Syrian government of President Assad, said the US Treasury. The militants produce and sell roughly 10,000 bpd of oil, “[controlling] oil refineries of various sizes and output capacities, and [earning] some revenue from the sale of refined petroleum products,” Mr. Cohen noted. Whilst US-led airstrikes have shown some efficiency in disrupting the IS-controlled oil supply network, the coordinated efforts of Turkey, the Kurdistan Regional Government and the US have led to a dramatic slump of ISIL’s oil supply.

The militants have earned about $20 million this year in exchange for kidnapped civilians. “For ISIL, these ransom payments are irregular, but each one can be a significant boon. This spring, ISIL released captured journalists and other hostages from several European countries. In return, according to press reports, ISIL received several multi-million dollar payments,” Mr. Cohen said.

The Islamic State also extorts businesses in the territory it controls. They also sell everything they can, from looted antiquities to livestock to grains to humans as “they sell abducted girls and women as sex slaves,” expressed Mr. Cohen. IS also has sources of external funding and “maintains important links to financiers in the Gulf, as a spate of Treasury designations last month made clear,” he added.

The US Treasury says that the terrorist organization is vulnerable to airstrikes because of its “desire to act like the government of a state.” The militants have gone as far as providing services like water and electricity to the local population.

The measures proposed by the US Treasury to cut IS financing and restrict its access to the international financial system include the imposition of sanctions against militant leaders and other affiliates. Simultaneously, airstrikes will continue in order to further disrupt the organization’s economic infrastructure.

“Cutting off one key source of funds will require dislodging it from territory in which it operates,” Mr. Cohen concluded. “But even as this vital military campaign progresses, we recognize that the only solutions are political in nature. The hateful ideology propagated by ISIL must be countered by tolerant, economically vibrant societies and governments that rule in an inclusive manner.” 



Source Panorama.am
Share |
Տեքստում սխալ կամ վրիպակ նկատելու դեպքում, ուղարկեք խմբագրին հաղորդագրություն` նշելով տվյալ սխալը, այնուհետև սեղմելով Ctrl-Enter:

Newsfeed

12:23
Police raiding homes of Armenian opposition group members
The Armenian authorities are searching the homes of members and supporters of the opposition group National Democratic Pole as well as its...
11:47
Armenian leadership seeking rupture of ties with Russia, Lavrov says
The Armenian leadership is messing up relations with Moscow for no good reason, TASS quoted Russian Foreign Minister Sergey Lavrov as...
11:30
Today marks Good Friday
The week leading up to Easter or Holy Resurrection is called Holy Week (in Armenian Avak Shabat). During this period, the Armenian Apostolic...
11:15
Political prisoner Narek Samsonyan sends open letter-inquiry to U.S. ambassador
Chairman of Civic Consciousness NGO, founder of AntiFake.am media outlet, political prisoner Narek Samsonyan wrote an open letter-inquiry to...
11:00
ARF calls for consolidation to save Armenian statehood
The Armenian Revolutionary Federation-Dashnaktsutyun (ARF-D) Bureau issued the following statement on Thursday: "In recent weeks, Nikol...
17:12
She said yes: Marriage proposal at Hayat Project concert in Gyumri
A young man proposed to his beloved at a Hayat Project concert in Gyumri, Armenia’s second largest city. In a video posted online, the...
16:45
Opposition MP slams Pashinyan's Artsakh statements
Opposition Hayastan faction MP Ishkhan Saghatelyan has expressed support to the Artsakh government in exile following Armenian Prime Minister...
16:04
MP Aghvan Vardanyan visits arrested activists
MP Aghvan Vardanyan, who represents the opposition Hayastan faction, on Thursday visited the Armavir Penitentiary where activists Vazgen...
15:36
Armenian opposition MP visits border villages
Opposition MP Tigran Abrahamyan has visited the villages of Voskepar and Baghanis in Tavush Province adjacent to the border areas demanded by...
15:04
Ex-Yerevan mayor setting up new party
Former Yerevan Mayor Hayk Marutyan is setting up a new party in the near future, his team has confirmed to RFE/RL’s Armenian Service....
14:36
Armenia to send 29.94 tons of humanitarian aid to Gaza
Armenia will deliver 29.94 tons of humanitarian aid to Gaza ravaged by the conflict with Israel. The decision was approved at a cabinet...
14:07
Expert: Pashinyan decided to terrorize Artsakh leaders
Political analyst Suren Surenyants has criticized Prime Minister Nikol Pashinyan’s statements on Artsakh leaders at a cabinet meeting on...
13:35
Analyst: The West doesn't care about Armenia
The West wants Armenia and Azerbaijan to sign a peace treaty as soon as possible and Armenia's territorial losses do not matter to it,...
13:06
Moscow concerned over anti-Russian bias of Armenia-EU-US meeting
The Armenia-EU-US meeting scheduled for April 5 is causing Moscow’s concern as Washington and Brussels are openly discussing its...
12:37
Pashinyan: Some circles displaced from Karabakh take actions threatening Armenia's security
Prime Minister Nikol Pashinyan warns that the actions taken by “some circles” forcibly displaced from Nagorno-Karabakh (Artsakh)...
12:04
Artsakh dissolution decree was 'the only way' to save people, president says
President Samvel Shahramanyan claims his decree ordering the dissolution of the Artsakh (Nagorno-Karabakh) Republic was the “only...
11:30
Japanese supplement products recalled after two deaths and over 100 people hospitalized
Health supplement products believed to have caused two deaths and sickened more than 100 people have been ordered to be taken off store shelves...
11:15
Today is Holy Thursday
The week leading up to Easter or Holy Resurrection is called Holy Week (in Armenian Avak Shabat). During this period, the Armenian Apostolic...
11:00
Upcoming Armenia-US-EU meeting not directed against any third party – Foreign Ministry
The high-level meeting scheduled for April 5 in Brussels is aimed at strengthening Armenia-EU-US cooperation and is not directed against...
17:00
Azerbaijan's team opts out of Sambo World Cup in Yerevan
Azerbaijan's national team will not participate in the Sambo World Cup to be held in Yerevan, Armenia, Azerbaijani Sambo Federation official...
16:45
Biden calls Putin 'butcher'
US President Joe Biden has disparaged his Russian counterpart Vladimir Putin for the second time in two months, publicly calling him a...
16:30
Armenian parliament speaker defends land handover to Azerbaijan
Armenian National Assembly Speaker Alen Simonyan has defended the plans to hand over border villages in Tavush Province to Azerbaijan. He...
16:04
Azerbaijan must create conditions for safe return of Armenians to Nagorno-Karabakh, UK says
The UK government is clear that Azerbaijan must create the conditions for a safe and secure return of ethnic Armenians who were displaced from...
15:35
Photo campaign calls for release of political prisoners in Armenia
A photo campaign for the release of Armenian opposition activists has been launched in Yerevan. Photos of political prisoners Narek...
15:15
Arthur Abraham's father dies at 68
German-Armenian boxing star Arthur Abraham’s father, Grigor Abrahamyan, has died in Berlin at the age of 68. “We’re deeply...
15:00
Armenian MP warns of threats after possible land handover to Azerbaijan
Opposition MP Tigran Abrahamyan has warned of threats to a number of settlements in Armenia amid Prime Minister Nikol Pashinyan’s signaled...
14:31
EU mission hosts French ambassador to Armenia
The EU Mission in Armenia (EUMA) on Wednesday hosted French Ambassador to Armenia Olivier Decottignies and members of the French...
14:06
Azerbaijan opposes Armenia-EU-US conference
The Azerbaijani Foreign Ministry has deplored the EU-Armenia-US joint conference scheduled for 5 April, warning that it will create...
13:36
Political prisoner Vazgen Saghatelyan slams Pashinyan in letter from prison
Political prisoner Vazgen Saghatelyan has blasted Armenian Prime Minister Nikol Pashinyan and his regime for efforts to silence their critics in...
12:34
U.S. aims to encourage Armenia and Azerbaijan to bridge differences – State Dept.
The objective of the United States is to encourage Armenia and Azerbaijan to bridge their differences, U.S. State Department...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}