☒ #Governing Islamic State’s Oil Gap Filled By Russia And China

In a recent security report Islamic State’s oil revenues has declined by 30% (Report: Islamic State Annual Revenue Down Nearly 30 Percent). You might not be aware that ISIS derives the bulk of its revenues from oil production in the territories it holds captive and it sells them to customers who do not have access to the regular market place (rogue nations, small tribal customers). As these territories come under attack and the population leaves, from 9 million to 6 million people now, ISIS is suffering from a reduced ability to conduct its oil business operations. The other illegal stuff it does is a smaller share of its money.

Meanwhile, the Russians and Chinese still hold their oil investments in Syria, and are ready to restart production when Chinese nationals fled Syria in 2013. In addition to oil, “In December, China offered Syria 6 billion USD worth of investments in addition to 10 billion USD worth of existing contracts, as well as a huge deal signed between the Syrian government and Chinese telecommunications giant Huawei to rebuild Syria’s telecom infrastructure as part of China’s 900 billion USD ‘Silk Road’ infrastructure initiative (How (and why) Russia and China are supporting Syria’s devastated economy).”