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ISIS’s Revenues
include Sales of
Oil to the al-
Assad Regime
Anne Speckhard, Ph.D. & Ahmet S. Yayla, Ph.D.
For months now disaffected Syrian, ISIS defectors we have been interviewing in our ISIS
Defectors Interview Project have been telling us that one of the many reasons that they
became disenchanted with ISIS was that their leaders were directly negotiating and
selling oil to their enemy, Bashar al-Assad—oil that was then used in barrel bombs that
rained back down on the Sunnis uprising against the Assad regime.1 This week the Wall
Street Journal reported on some of the thousands of documents extracted in the May 2015
U.S. Special Forces raid against Abu Sayyaf, one of ISIS’s oil emirs (known by his nom
de guerre) —confirming that indeed these defectors were telling the truth.2
According to documents retrieved in the raid of Abu Sayyaf’s Deir ez-Zor hideout and
now viewed by the Wall Street Journal, the Syrian regime of Bashar al-Assad entered
into multimillion-dollar oil deals with ISIS.3 According to Newsweek, this sale of oil to
Damascus helped the group to reach a peak of $40 million a month in oil revenue with
the Assad regime oil deals contributing to seventy-two percent of the $289.5 million the
group earned in natural-resource revenues in the six months preceding February 2015.4
Even now, some analysts estimate the Syrian regime is buying 20,000 barrels of oil per
day from ISIS. Likewise, the Assad regime has kept the electricity on for the so-called
ISIS “Caliphate”, supplying them with electricity throughout their time in power—an
eerie thought when one considers the possibility of ISIS with the lights off and an
inability to access the Internet.5
A document identified as Memo No. 156, dated February 11, 2015 shows Abu Sayyaf,
who headed the Islamic State’s Diwan of Natural Resources (the terrorist group’s oil
ministry), requesting an unknown party to build investment links with businessmen allied
to the Assad regime for the sale of oil to the regime. The document also reveals that ISIS
already had agreements with Damascus to permit oil trucks!and pipeline transit from
regime-controlled fields through ISIS-controlled territory, something our defectors also
told us.6
Indeed, our ISIS defectors have repeatedly told us that ISIS emirs made agreements with
the Assad regime for the sale of oil and some of the defectors recalled being called to act
as guards for and personally witnessing regime engineers and oil specialists arriving from
Damascus to the Deir ez-Zor oil fields, having come to repair the pipelines and pumping
devices so that oil could be delivered and sold to the regime. When our defectors
complained to and questioned their emirs about these sales they were rudely rebuffed by
their leaders and told that ISIS is a “state” and able to negotiate any deal it wishes with
other states, and reminded that they should not question the wisdom of their leaders. This
despite that oil sold to the regime returned to haunt them, as al-Assad’s barrel bombs
filled with oil—likely sold to them from ISIS—rained back down upon their heads and
killed their cadres and family members.
According to The Wall Street Journal, two former oil emirs also confided to WSJ
reporters that ISIS had made deals with businessman connected to the Syrian regime. The
documents confirming these reports were captured when U.S. Special Forces entered
Eastern Syria via Iraq, killing ISIS cadres guarding Abu Sayyaf’s compound before they
also assassinated him.7 Abu Sayyaf’s wife, Umm Sayyaf who is suspected along with her
husband of having organized the sex slave trade in ISIS was also captured in the raid and
later transferred to the Kurds.8
Now however, Turkey has attempted to crack down on illicit trade and ISIS has also lost
control of a lot of its Syrian border with Turkey to the Kurds. The funds from oil sales
enable them to pay their cadres regular monthly salaries and obtain weapons—some that
arrive new in boxes—according to our ISIS defectors interviews.
As ISIS swept across eastern Syria in late 2013, and early 2014, the militants seized
many of Syria’s key oil fields in the Deir ez-Zor province, such as al-Tanak and al-Omar.
In January 2016, Syrian Kurds recaptured al-Jasbah oil field, an area that was producing
three thousand barrels of oil a day. The U.S.-led coalition, as well as Russian, air strikes
have targeted oil fields held by ISIS significantly reducing its ability to refine oil and sell
it to illicit buyers.9 Thus, despite a brisk trade with the al-Assad regime up to thirty
percent of the Islamic State’s oil infrastructure has been destroyed, according to a U.S.
government sources by coalition airstrikes, and oil revenues are no longer the terrorist
group’s primary source of income. Still, oil revenues, down from five hundred million
per year in 2014, are currently making ISIS approximately three hundred sixty-five
million U.S. dollars per year, or one million U.S. dollars per day, on its oil sales,
including sales to businessmen linked to the Assad regime.10
ISIS’s primary source of revenue now comes from taxing those under its control (making
forty-eight million U.S. dollars per year). 11 ISIS charges all of its “citizens” ten percent
tax on income and the same percent on all cash withdrawals and an additional twenty
percent tax on all services.12 However those revenues are also threatened with ISIS
controlled territory shrinking. Up to now, ISIS also made about one billion from the
seizure of bank vaults, twenty million in ransoms from hostage-taking, one hundred
million from the sale of antiquities and an unknown amount from its trade in slaves and
control of phosphates and cement.13 Our defectors also told us that ISIS sells grain stores
to the Assad regime, and that they worry that without seeds and support for planting, the
people currently living under ISIS may starve in upcoming seasons.
Current and Past Sources of ISIS’s Revenue
• Taxes – $576 million per year (shrinking as the group’s territory is degraded)14
• Oil Revenues - $365 million per year (down from $500 million per year)15
• Sale of Antiquities - $100 million estimated thus far16
• Seizure of Bank Vaults – $500 million to 1 billion (one time grab)17
• Ransoms from Hostage Takings - $20 million thus far
• Trade in Phosphates and Cement – Unknown
• Trade in Slaves - Unknown
That ISIS made illicit deals with the Assad regime was a major source of frustration to
many of the ISIS cadres who spoke with us, and a significant reason for defecting. While
conspiracy theories abound in the Middle East, and the recent conflicts have made for the
strangest of alliances, some of our ISIS defectors seriously wondered if ISIS was actually
a direct product of the al-Assad regime. They pointed to the fact that the regime’s
military often surrendered huge stores of weapons to the militant group when retreating
rather than destroy them essentially supplying ISIS with weapons, and why ISIS cadres
fought more with the Free Syrian Army, killing Sunnis, than with the regime.
More details on these topics are included in our forthcoming book ISIS Defectors: Inside
Stories of Confronting the Caliphate, Advances Press 2016.
Anne Speckhard, Ph.D. is Adjunct Associate Professor of Psychiatry at Georgetown
University in the School of Medicine and is Director of the International Center for the
Study of Violent Extremism (ICSVE) and is a nonresident Fellow of Trends. She is also
the author of Talking to Terrorists and coauthor of Undercover Jihadi. Her newly released
book, inspired by the true story of an American girl seduced over the Internet into ISIS,
is Bride of ISIS. Dr. Speckhard has interviewed nearly five hundred terrorists, their
family members and supporters in various parts of the world including Gaza, the West
Bank, Chechnya, Iraq, Jordan and many countries in Europe. She was responsible for
designing the psychological and Islamic challenge aspects of the Detainee Rehabilitation
Program in Iraq to be applied to twenty thousand detainees and eight hundred juveniles.
She is currently running the ISIS Defectors Interview Project with Dr. Ahmet Yayla at
ICSVE. Personal website: www.AnneSpeckhard.com
Ahmet S. Yayla, Ph.D. is Professor and the Chair of Sociology Department at Harran
University in south of Turkey by the Syrian border and the Deputy Director of the
International Center for the Study of Violent Extremism (ICSVE). Dr. Yayla served as
Chief of Counter-terrorism and Operations Division in the Turkish National Police. He
has earned his masters and Ph.D. degrees on the subject of terrorism and radicalization at
the University of North Texas. Dr. Yayla’s research mainly focuses on terrorism,
sociology, dealing with terrorism without use of force, terrorist recruitment and
propaganda, radicalization (including ISIS and al Qaeda) and violence. He has authored
many works on the subject of terrorism. He has also been advisor to the United States
Department of Homeland Security (November 2005 to April 2006) on issues of terrorism
and interacting with Muslim Communities in the United States. Dr. Yayla witnessed
(October 21st, 2006) to the United States Congress and Senate, Homeland Security
Committee and Subcommittee on Prevention of Nuclear and Biological Attacks on the
subject of “Local Law Enforcement Preparedness for countering the threats of terrorism.”
Reference for this article is: Speckhard, Anne & Yayla, Ahmet S. (April 27, 2016) ISIS’s
Revenues Include Sales of Oil to the al-Assad Regime, ICSVE Brief Report
http://www.icsve.com
References:
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1!Speckhard, A., & Yayla, A. S. (December 2015). Eyewitness accounts from recent
defectors from Islamic State: Why they joined, what they saw, why they quit.
Perspectives on Terrorism, 9(6), 95-118. Retrieved from
2 Faucon, B., & Coker, M. (April 24, 2016). The Wall Street Journal. The Wall Street
Journal. Retrieved from http://www.wsj.com/articles/the-rise-and-deadly-fall-of-
islamic-states-oil-tycoon-1461522313
3 Faucon, B., & Coker, M. (April 24, 2016). The Wall Street Journal. The Wall Street
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Journal. Retrieved from http://www.wsj.com/articles/the-rise-and-deadly-fall-of-
islamic-states-oil-tycoon-1461522313
4 Moore, J. (April 26, 2016). ISIS's multimillion-dollar oil deals with Assad regime
uncovered in U.S. Special Forces raid. Newsweek. Retrieved from
http://europe.newsweek.com/isis-multi-million-oil-deals-assad-regime-revealed-
us-special-forces-raid-452426
5 Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/
6 Faucon, B., & Coker, M. (April 24, 2016). The Wall Street Journal. The Wall Street
Journal. Retrieved from http://www.wsj.com/articles/the-rise-and-deadly-fall-of-
islamic-states-oil-tycoon-1461522313
7 Loveluck, L., & Blair, D. (May 16. 2015). US special forces kill 'senior Isil leader'
Abu Sayyaf in rare Syria raid. The Telegraph. Retrieved from
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forces-kill-Isil-leader-in-rare-raid-inside-Syria.html
8 Mortimer, C. (February 8, 2016). Kayla Mueller: Wife of senior Isis leader, Umm
Sayyaf, charged in connection with US aid worker's death. Independent.
Retrieved from http://www.independent.co.uk/news/world/middle-east/kayla-
mueller-wife-of-senior-isis-leader-umm-sayyaf-charged-in-connection-with-us-
aid-workers-death-a6862021.html
9 Wintour, P. (March 8, 2016). Oil revenue collapse means Isis reliant on Gulf funds,
inquiry hears. The Guardian. Retrieved from
http://www.theguardian.com/world/2016/mar/08/oil-revenue-collapse-isis-reliant-
gulf-funds-inquiry-hears
10 Faucon, B., & Coker, M. (April 24, 2016). The Wall Street Journal. The Wall Street
Journal. Retrieved from http://www.wsj.com/articles/the-rise-and-deadly-fall-of-
islamic-states-oil-tycoon-1461522313
11 Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/
12 Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/
13 Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/
14!Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/!
15 Faucon, B., & Coker, M. (April 24, 2016). The Wall Street Journal. The Wall Street
Journal. Retrieved from http://www.wsj.com/articles/the-rise-and-deadly-fall-of-
islamic-states-oil-tycoon-1461522313
16 Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/
17 Lister, T. (March 9, 2016). Is ISIS going broke? CNN. Retrieved from
http://edition.cnn.com/2016/03/04/middleeast/isis-finance-broke-lister/!