Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Why Islamic State may need to cut back

Tuesday, April 19, 2016 - 01:41

The Islamic State’s monthly revenue has dropped by over 30 percent in the last year, according to new analysis by IHS. As Ivor Bennett reports, there are also claims they're looking at alternative fund raising methods - including selling stolen art.

▲ Hide Transcript

View Transcript

Mobile cranes attempt to repair damaged oil fields. But with coalition fighter jets overhead, they don't get very far. Major sources of Islamic State's income being picked off one-by-one. Research group IHS estimates the group's oil production has dropped by a third since last summer. Contributing to a fall in monthly revenues from 80 million dollars to 56 million. Still a lot, but maybe not enough. SOUNDBITE (English) LUDOVICO CARLINO, SENIOR ANALYST, IHS, SAYING: "It's too early to say the beginning of the end but I do see the Islamic State increasingly in trouble in running the Caliphate and providing all the social services for the population and run all the different activities in the Caliphate." Offensives by Iraqi and Syrian forces have meant the group is also losing territory. And with it, people to tax. Those revenues have reportedly decreased by 23 percent. Attempts to offset this apparently include taxes on satellite repairs and fines for driving on the wrong side of the road. It's reported the group's even accepting fines as an alternative to the traditional punishments dictated by Sharia Law. SOUNDBITE (English) LUDOVICO CARLINO, SENIOR ANALYST, IHS, SAYING: "When you see such a group accepting money instead of applying Sharia it means that the financial situation is really troubling for the group." The destruction of cultural sites like Palmyra is another of the group's stated aims. But it seems that too is being compromised. It's claimed they're selling artifacts they find instead of destroying them. Money clearly one of their most powerful weapons.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Why Islamic State may need to cut back

Tuesday, April 19, 2016 - 01:41