Tuesday, 8 December 2015

The financial ocean surrounding ISIS



Terrorism in the 21st century has reached incredible heights. Day after day, newspaper headlines revolve around chaos in the Middle East. These days, news related to terrorism has become extremely predictable. It begins with reporting the estimations of an attack, and then moves on to the outfit claiming responsibility for it. In every article you will come across a senior official from a western security agency, proclaiming that “extreme measures are being taken to eradicate terrorism”. But isn’t that a laughable joke in itself?

Off late, global terrorism has been given a completely new meaning by the Islamic State of Iraq and Syria (ISIS). The much condemned terror outfit is making rapid progress with every passing day. Firstly, ISIS is a Wahhabi jihadist Islamic extremist militant group, hell bent on creating an Islamic State in regions in and around Iraq and Syria. ISIS was initially dismissed as “just another terror outfit” but today, this organization has even surpassed Al Qaeda and Taliban. The fighters of this organization are equipped with the latest arms and ammunition. As per sources, these weapons are more advanced than the ones in possession of government security agencies.  

But the main question is, how is ISIS achieving its goals so quickly? The answer to that is the ocean of finance surrounding the dreaded group. As a matter of fact, ISIS has made terrorism look like an extremely lucrative business activity. It is the richest terrorist organization by a distance, and its overall capitalization stands at a staggering $2 billion. The daily revenues generated by ISIS are rumored to be close to $3 million/day. With such financial numbers by their side, it won’t be a surprise if ISIS soon begins aerial attacks.

There are various sources to garner this amount. The biggest asset of this terror organization is oil. Their fighters have captured numerous oil fields in Syria and Iraq, and currently, they are the undisputed owners of the oil refineries. Oil dealers, looking to exploit the commodity at a dirt cheap rate get in touch with the ISIS officials. The officials are believed to be selling a barrel of oil anywhere in the range of $10-$35. The buyers or traders, sell this at a much higher rate to middle men, who in return mark up their own profit and distribute it to their respective buyers. The oil is even said to be sold across the border in Turkey at $12.5/ barrel, where the oil rates are reasonably high ($56.75/ barrel).

A map showing the oil fields captured by ISIS

Members of the secret police of this organization are austere in defending the captured oilfields. The individuals within the cell of the secret police ensure that the daily targets for oil extraction and sales are met. These individuals have literally developed a system of meeting their goals, like a well structured shell corporation would. ISIS is adapting economics with terrorism agonizingly well. What’s more, special mentions are made towards the productivity in oil extraction, by high ranking members of the group!

Another path of financing its barbaric activities is through kidnappings and ransoms. Between 2008 and 2014, ISIS generated about $125 million only through demanding ransoms. The cruelty with which they intimidate their victims acts as a deterrent to those who resist the demands of the kidnappers. After plundering the central bank in the Iraqi city of Mosul, ISIS generated approximately $429 million worth of income. With $429 million, ISIS has the resources to pay 60,000 fighters $600/month for a whole year!

Oil distribution network of the ISIS

To amplify their wealth, the terror state also receives bulky donations from states in the Middle East. Officials from the Iranian government have time and again blamed Saudi Arabia for financing the needs of ISIS. Qatar however, has been the worst offender in this case. ISIS also levies heavy taxation on people living in their controlled territory. The taxes are said to be levied on citizens for using roads and highways controlled by ISIS.

Their satanic acts don’t just cease here! ISIS also has been blamed in sexual trafficking of young women to numerous countries. Russian President Vladimir Putin recently revealed that ISIS was even being funded by G-20 nations. With so many ways of generating money, ISIS intends to establish its own currency in the years to come.

The progress of ISIS is indeed a colossal threat to humanity as a whole, as it can soon spread its wings to major parts of the globe. It is high time for the world to unite against this Caliphate, before even more disastrous consequences come to the fore.



Image Courtesy: ft.comgoogle.com
Statistics Courtesy : ft.com