Source of terror group’s millions uncovered in new report by North MP

OIL, TAX, AND TRADE KEY TO DAESH

TERRORIST group ISIS raised billions of pounds from oil sales, taxing millions of residents and trading in products such as sulphur and cement.

The story of how the so-called Islamic state became one of the richest terror groups in the world – possibly the wealthiest ever seen – has been revealed by Sedgefield MP Phil Wilson.

Drawing on expert testimony, he produced a report for the Council of Europe explaining how ISIS used a number of lucrative revenue streams to finance its operations across the globe, l b including i l di sophisticated hi ti t d propaganda designed to encourage “lone wolf” supporters in countries such as the UK to carry out terror attacks.

ISIS, which once ruled 10 million people in Iraq and Syria, has been defeated militarily and now controls only 2% of its former territory. But Mr Wilson said it was important to understand how it operates, because it is unlikely to be gone for good.

Referring to the terror group as Daesh, he said: “The military defeat of Daesh in Iraq and Syria unfortunately does not mean the end of this terrorist group as it will probably morph h into i t something thi diff different. t

“It is therefore important to ensure that it will not be able to use the funding sources it has used in the past.”

In a report to the Council of Europe’s Committee on Political Affairs and Democracy, Mr Wilson explained that Islamic State raised 500 million US dollars in 2015 from selling oil from refineries and oil fields in Iraq and Syria.

This fell to $200million in 2016 thanks to a fall in prices and air strikes led by the international coalition which targeted anything related to the production of oil.

ISIS was also l reported t d to t h have taken control of the Akashat phosphate mine and the Al-Qaim manufacturing plant in the Al-Anbar province of Iraq, in 2015.

It seized several sulphur extraction plants belonging to the Mishraq Sulphur State Company and the main salt mine of Syria.

And it had control of five major cement plants in Syria and Iraq.

It is estimated that in 2014 ISIS was able to earn approximately $300million from phosphate products and $292million from cement.

ISIS also controlled the largest reserve of natural gas in Iraq at the Akkas field in the Al Anbar province.

In recent years the terror group has attempted to make up for the loss of oil revenue by extracting money from the people living in the remaining territory it controls.

Almost everything was taxed, including cash withdrawals, salaries, and roads. It also charged a “protection” tax for non-Islamic residents.

Iraqi Government employees living and working in territories held by ISIS continued to be paid, but were forced to travel elsewhere to withdraw their salaries.

However, once they returned home, their salaries were taxed by Daesh, sometimes by up to as much as 50%.

ISIL could have earned up to $360 million in tax in 2014. In 2016, and especially after the loss of Mosul, in northern Iraq, the revenue generated from taxes and fees was reduced to US$250 million, according to the International Centre for the Study of Radicalisation (ICSR).

Kidnapping for ransom was also used by ISIS to generate revenue. Member States of the Financial Action Task Force, a body set up by world’s major economies, believe this raised between $20m and $45m for the year 2014 and $23m for 2015. Other sources claim it could have been as much as $120m per year. Much of Palmyra in Syria was destroyed by Islamic State but it’s belived they also profited from its artefacts