http://fortunascorner.com/2014/09/14/oil-theft-and-extortion-how-isis-earns-3mday-richest-terrorist-group-in-world-history/





OIL, THEFT, AND EXTORTION: HOW ISIS EARNS $3M/DAY; RICHEST TERRORIST GROUP
IN WORLD HISTORY



Oil, Theft, And Extortion: How ISIS Earns $3M A Day And Is The Richest
Terrorist Group In World History



http://www.fortunascorner.wordpress.com



The Associated Press’s Ken Dilanian, in an article out this afternoon,
writes that the Islamic State, once largely dependent on wealthy Gulf
donors…”have become a self-sustaining, financial juggernaut — earning more
than $3M per day from oil smuggling, human trafficking, theft and
extortion,” according to U.S. intelligence officials and private experts.”



The extremist group’s resources exceed that “of any other terrorist group
in history,” said a U.S. intelligence official who, like others interviewed
[by the AP], spoke on the condition of anonymity to discuss classified
documents. Mr. Dilanian writes that “the Islamic State has taken over large
sections of Syria and Iraq, and controls as many as 11 oil fields in both
countries,” analysts say. “It is selling oil and other through
generations-old smuggling networks under the noses of some of the same
governments it is fighting: Kurdish controlled northern Iraq, Turkey, and
Jordan,” Mr. Dilanian added.



“There’s a lot of money to be made,” said Denise Natali, who worked in
Kurdistan as an American official; and, now is a Senior Research Fellow at
National Defense University. “The Kurds say they have made an attempt to
close it down; but, you pay off a border guard or somebody else…and, you
get stuff through. Mr. Dilanian notes that “the price the Islamic State
fetches for its smuggled oil, is discounted -$25 to $60 per barrel — that
would normally sell for more than $100 (not right now) — but, it’s total
profits from oil are exceeding $3M a day,” said Luay al-Khatteeb, a
Visiting Fellow at the Brooking’s Institution’s Doha Center in Qatar. “The
territory that the Islamic State controls in Iraq alone is currently
producing anywhere from 25K to 40K barrels of oil a day, which can fetch a
minimum of $1.2M on the black market. “The key gateway through that black
market is the southern corridor of Turkey. Turkey is becoming part of this
“black economy, that funds ISIS” Mr. Khatteeb added.



“The group has also earned hundreds of millions of dollars from smuggling
antiquities out of Iraq to be sold in Turkey,” al-Khatteeb said, and
“millions more from human trafficking — selling women and children as sex
slaves.” “Other revenue comes from extortion payments, ransom from
kidnapped hostages, and outright theft of all manner of materials from the
towns the Islamic State has seized,” analysts said, according to Mr.
Dilanian.



“It’s cash-raising activities resemble those of a mafia-like organization,”
a second U.S. intelligence official said. “They are well-organized,
systematic, and enforced through intimidation and violence.” “Even prior to
seizing Mosul in June, for example, the group began to “impose” taxes on
nearly every facet of economic activity, threatening death to those
unwilling to pay,” U.S. intelligence officials said. A recent analysis by
The Council On Foreign Relations, estimated the group was reaping $8M per
month from extortion in Mosul alone.



“Once the group took over Mosul in northern Iraq, and other areas, it
grabbed millions of dollars in cash from banks; though, not the hundreds of
millions initially reported. The Islamic State has managed to successfully
translate territorial control in northern Syria, and portions of Iraq into
a means of revenue generation,” said a third U.S. intelligence official.



Targeting ISIS Funding Network Proves Major Challenge



“Targeting the smuggling network has proved a major challenge, and so far
the Turkish authorities have been unwilling to cooperate. They’ve been
turning a blind eye to it, because they benefit from the lower price of
smuggled black-market oil,” said James Phillips, the Senior Fellow for
Middle Eastern Affairs at The Heritage Foundation. Turkey is clearly a
center of gravity to substantially negate ISIS’s funding; but, thus far
Ankara is not fully onboard with U.S. efforts to cutoff ISIS’s black-market
activities. The U.S. Treasury Department, on August 6, announced it was
imposing sanctions on three key terrorists financiers — including an
individual who allegedly helped ISIS transfer funds from Kuwait to Syria;
and, has helped pay for foreign fighters from Syria to Iraq, according to
CBS News. V/R, RCP



Page 1



OIL, THEFT, AND EXTORTION: HOW ISIS EARNS $3M/DAY; RICHEST TERRORIST GROUP
IN WORLD HISTORY



Oil, Theft, And Extortion: How ISIS Earns $3M A Day And Is The Richest
Terrorist Group In World History



http://www.fortunascorner.wordpress.com



The Associated Press’s Ken Dilanian, in an article out this afternoon,
writes that the Islamic State, once largely dependent on wealthy Gulf
donors…”have become a self-sustaining, financial juggernaut — earning more
than $3M per day from oil smuggling, human trafficking, theft and
extortion,” according to U.S. intelligence officials and private experts.”



The extremist group’s resources exceed that “of any other terrorist group
in history,” said a U.S. intelligence official who, like others interviewed
[by the AP], spoke on the condition of anonymity to discuss classified
documents. Mr. Dilanian writes that “the Islamic State has taken over large
sections of Syria and Iraq, and controls as many as 11 oil fields in both
countries,” analysts say. “It is selling oil and other through
generations-old smuggling networks under the noses of some of the same
governments it is fighting: Kurdish controlled northern Iraq, Turkey, and
Jordan,” Mr. Dilanian added.



“There’s a lot of money to be made,” said Denise Natali, who worked in
Kurdistan as an American official; and, now is a Senior Research Fellow at
National Defense University. “The Kurds say they have made an attempt to
close it down; but, you pay off a border guard or somebody else…and, you
get stuff through. Mr. Dilanian notes that “the price the Islamic State
fetches for its smuggled oil, is discounted -$25 to $60 per barrel — that
would normally sell for more than $100 (not right now) — but, it’s total
profits from oil are exceeding $3M a day,” said Luay al-Khatteeb, a
Visiting Fellow at the Brooking’s Institution’s Doha Center in Qatar. “The
territory that the Islamic State controls in Iraq alone is currently
producing anywhere from 25K to 40K barrels of oil a day, which can fetch a
minimum of $1.2M on the black market. “The key gateway through that black
market is the southern corridor of Turkey. Turkey is becoming part of this
“black economy, that funds ISIS” Mr. Khatteeb added.



“The group has also earned hundreds of millions of dollars from smuggling
antiquities out of Iraq to be sold in Turkey,” al-Khatteeb said, and
“millions more from human trafficking — selling women and children as sex
slaves.” “Other revenue comes from extortion payments, ransom from
kidnapped hostages, and outright theft of all manner of materials from the
towns the Islamic State has seized,” analysts said, according to Mr.
Dilanian.



“It’s cash-raising activities resemble those of a mafia-like organization,”
a second U.S. intelligence official said. “They are well-organized,
systematic, and enforced through intimidation and violence.” “Even prior to
seizing Mosul in June, for example, the group began to “impose” taxes on
nearly every facet of economic activity, threatening death to those
unwilling to pay,” U.S. intelligence officials said. A recent analysis by
The Council On Foreign Relations, estimated the group was reaping $8M per
month from extortion in Mosul alone.



“Once the group took over Mosul in northern Iraq, and other areas, it
grabbed millions of dollars in cash from banks; though, not the hundreds of
millions initially reported. The Islamic State has managed to successfully
translate territorial control in northern Syria, and portions of Iraq into
a means of revenue generation,” said a third U.S. intelligence official.



Targeting ISIS Funding Network Proves Major Challenge



“Targeting the smuggling network has proved a major challenge, and so far
the Turkish authorities have been unwilling to cooperate. They’ve been
turning a blind eye to it, because they benefit from the lower price of
smuggled black-market oil,” said James Phillips, the Senior Fellow for
Middle Eastern Affairs at The Heritage Foundation. Turkey is clearly a
center of gravity to substantially negate ISIS’s funding; but, thus far
Ankara is not fully onboard with U.S. efforts to cutoff ISIS’s black-market
activities. The U.S. Treasury Department, on August 6, announced it was
imposing sanctions on three key terrorists financiers — including an
individual who allegedly helped ISIS transfer funds from Kuwait to Syria;
and, has helped pay for foreign fighters from Syria to Iraq, according to
CBS News. V/R, RCP












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