Seven sources of Islamic State’s income

By Vestnik Kavkaza
Seven sources of Islamic State’s income

The man convicted on terrorism charges in Tunisia will now be sentenced to death. The Parliament of the country almost unanimously voted for the adoption of a new anti-terrorism law after the terrorist attack in the city of Sousse, which killed 40 people, and 40 were wounded. Among those killed were Britons, Belgians, Irish, Germans, Portuguese and a Russian woman. Responsibility for the attack was taken by the extremist organization Islamic State. 

Now IS is threatening attacks in Turkey, and the extremists want to organize bombings at popular seaside resorts –on the beaches and in hotels. Promises to arrange a "massacre" have been made by terrorists after the Turkish army attacked the base of IS on the territory of neighboring countries – Iraq and Syria – and in major Turkish cities Kurdish and Islamic activists were arrested. 

Four months ago, the Interreligious Council of Russia (MCP) called on the Russian media to abandon the term Islamic State, discrediting Islam and statehood, and use the Arabic acronym Daishev for the terrorists in Syria and Iraq. The similar 'Daesh' Arabic acronym in all non-Arab languages doesn’t have any association with the concepts of "Islam" or ‘’State.’’ Moreover, it doesn’t contain negative connotations. MCP is confident that the phrase Islamic State condones the terrorists and multiplies the effect of the media on political and linguistic provocations. 

This acronym was used by the Chairman of the Scientific Advisory Board of the Anti-terrorist Center of the CIS member states Marianna Kochubey when she spoke about the economic model of Islamic State.

"If we look at the economy of Daesh, the first thing that attracts our attention is the fact that it exists on fundamentally different grounds from any other terrorist organization. If al-Qaeda existed as NGOs, that's how they worked when they had a source of external financing. If they had no such source, the members of the organization hid in the caves of Tora Bora. Daesh is a self-sufficient organization. It has domestic financing,’’ Kochubey said.

Experts consider that Islamic State is the richest and most sophisticated in financial matters terrorist organization in the world. Examination of documents shows that the economic management of this structure corresponds not only to the practice of financial community organizations such as economic systems of modern states. Moreover, there is the economic system of a belligerent state. Today Daesh has introduced a separate currency and founded its own banks. Daesh attracts qualified staff. And this is a signal for us: economists, managers, oil workers and energy workers. By means of the Internet, the Islamists post information about vacancies in the Islamic world. Daesh employs servicemen of all specializations, oil workers of all specializations, linguists and translators, doctors and physicians,’’ Kochubey says. According to information, today Daesh controls 40% of the arable lands in Iraq, where wheat is grown. Wheat provides food security. I wouldn’t be surprised if they post vacancies for skilled agronomists in the near future.  

According to Western specialists’ assessments, the head of the Financial Intelligence of the USA, the daily income of the jihadists from the sale of smuggling oil exceeds $1 million a day. The organization controls 6 out of 10 oil fields in Syria, as well as not only fields in the occupied regions of Syria and Iraq, but also oil rigs in the east of Libya.

According to the German intelligence service BND, while the the oil price on the global market is 80 dollars a barrel, Daesh sells it at a price of 25 dollars, giving it a steady income.

The second source of income is taxes and fines on controlled territories. ‘’Taxes were established in the areas under control of the quasi-state. The tax is 10% of the income. It is paid by almost all companies. Any buyer makes an additional pay of 2% with every purchase,’’ Kochubey said. 

According to experts, trading in stolen artifacts and historical treasures is in third place

The fourth point is the direct plundering of the occupied territories. ‘‘Moving through the territory of foreign states, IS captures the banks and bank vaults. A lot of real gold and foreign exchange reserves with completely different nominals came under their control,’’ the expert says.

The fifth item of income is hostage-taking, human and human organ trafficking. 

The sixth is customs duties. And finally the seventh is sponsors’ contributions.

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