WASHINGTON, October 23 (RIA Novosti) - The Islamic State (IS) earns approximately $1 million a day by selling oil into a black market in Turkey and the region, a US Treasury Department official said on Wednesday.
"So who, ultimately, is buying this oil? According to our information, as of last month, ISIL was selling oil at substantially discounted prices to a variety of middlemen, including some from Turkey, who then transported the oil to be resold," said David S. Cohen, Undersecretary for Terrorism and Financial Intelligence, during a speech at the Carnegie Endowment of International Peace. He added that the illegal operations with oil bring IS militants up to $1 million a day.
Cohen explained that smugglers transport oil extracts outside of IS-controlled territory through a range of vehicles, from large tankers to small containers. He added that oil revenue is not relegated to raw extracts as IS also derives profits from the sale of processed materials.
"We also understand that ISIL controls oil refineries of various sizes and output capacities, and earns some revenue from the sale of refined petroleum products," said Cohen.
In addition to profit from stolen oil, Cohen said IS raises funds through ransom, extortion, theft and donations from supporters outside Iraq and Syria.
The Islamic State is a Sunni jihadi group that has been fighting the Syrian government since 2012. It launched attacks in Iraq in June and announced the establishment of an Islamic caliphate on the territories under its control.