Iraq: Oil Smuggling Highlights Challenges in Shutting Down IS Finances

Feb 28, 2015 | Sharon Behn, Voice of America
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In the span of one year, Islamic State militants made more than half a billion dollars by seizing government banks, illegal oil sales, kidnapping and extortion, making them one of the wealthiest terrorist organizations in the world.

The United States, its allies and the United Nations are making efforts to shut down the money flows. Airstrikes in Iraq and Syria have knocked out oil fields and refineries. The United Nations Security Council has adopted strongly worded resolutions to prevent oil smuggling.

Pentagon spokesman Rear Admiral John Kirby said Friday that the Islamic State "certainly continues to get revenue from the oil industry black market" but that airstrikes have made a dent. Michael Lynch, president of Strategic Energy and Economic Research, says oil is still being smuggled into Turkey and even being refined in Iraqi and Syrian backyard distilleries for local sales.