Who is Buying Oil Controlled by ISIS?

The international community has long grappling with the economic activities of the Islamic State of Iraq and Syria (ISIS), particularly its lucrative oil trade. Central to understanding this complex network is identifying the entities, both domestically and internationally, that profit from ISIS's oil sales.

Who Are the Major Buyers of ISIS Oil?

According to Western media and intelligence agencies, countries such as Turkey, including its Kurdish regions, and Iran are among the key buyers of ISIS oil. These countries often purchase oil from ISIS because it is sold at a lower rate than market prices or due to the ease of access that bypasses state-controlled markets. This dynamic has facilitated a thriving black market for oil, which continues to provide financial sustenance to the terrorist organization despite international efforts to disrupt it.

Domestic and International Markets

While much of the oil is sold domestically to people living under Daesh's rule, the next largest market is the Syrian government. However, the smuggling networks extend far beyond ISIS's control. For instance, small-scale traders in Syria, Turkey, Kurdistan, Jordan, and Iran are significant buyers. These networks have been in operation since the era of Saddam Hussein and have flourished with the chaos and anarchy following the fall of his regime.

Who Is Buying the Islamic State's Illegal Oil?

The functioning of these smuggling networks is crucial to understanding ISIS's economic resilience. Reports suggest that oil from ISIS-controlled areas is sold to a variety of buyers:

Domestic consumers: The local population, especially the impoverished under Daesh's rule, purchase oil at reduced rates. Government entities: The Syrian government, in some cases, buys oil to cover essential services. Smuggling networks: Various networks in neighboring countries, from small traders to large networks, facilitate the illegal trade.

One example provided by a Syrian rebel commander highlights the pervasive nature of this trade. Despite being at war with ISIS, he purchases diesel from the group to support his operations and the needs of his fighters. This illustrates the widespread acceptance of ISIS oil among those who have no other choice.

Financing ISIS: From Wealth to War

The initial funding of ISIS came from sources such as Saudi Arabia and religious charities. However, as the group expanded, it turned to alternative funding sources, including oil smuggling. The profits from oil sales are used to pay salaries to fighters, as evidenced by reports that ISIS fighters in Syria earn up to 1,000 per month.

Global Trade Routes and Smuggling

ISIS has managed to establish robust trade networks, leveraging existing smuggling routes to transport oil from its controlled areas to markets in Turkey, Iran, and beyond. According to a report by the Financial Times, ISIS generates more than three times the revenue from oil smuggling than previously thought, with much of this trade going through Turkey.

Impact of Air Strikes and Countermeasures

Although various governments have bombed ISIS oil infrastructure, these efforts have not completely halted the flow of oil. Some of the networks have been damaged, yet ISIS continues to utilize new methods and routes. The profitability of these operations has allowed ISIS to maintain its economic and military capabilities.

Conclusion

The complex web of oil trade involving ISIS highlights the need for a comprehensive strategy to disrupt their sources of income. While military action is essential, addressing the underlying economic and social factors that perpetuate the demand for cheaper and illegal oil remains a critical task.

Understanding the key buyers of ISIS oil is crucial for developing targeted countermeasures. By identifying and isolating these networks, the international community can begin to weaken the financial, logistical, and operational support that ISIS relies on.