Islamic State oil is going to Assad, some to Turkey: U.S. official

An undated still image taken from a video made available by the Russian Defence Ministry in Moscow, Russia …

By Guy Faulconbridge and Jonathan Saul

Related Stories

1. France considers air strikes on Islamic State in Syria: Le Monde Reuters
2. Iranian banks that back Hezbollah, Qods Force would be re-sanctioned: U.S. official Reuters
3. France to begin Syria reconnaissance flights, mulls air strikes Reuters
4. Syria's Assad blames West for refugee crisis Reuters
5. U.S. says Assad must go, timing down to negotiation Reuters
6. Facebook® Account Sign Up. Join for Free Today! Facebook Sponsored 

LONDON (Reuters) - Islamic State militants are engaged in oil trading worth as much as $40 million a month with significant volumes sold to the government of President Bashar al-Assad and some finding its way across the border into Turkey, senior U.S. Treasury official Adam Szubin said on Thursday.
"ISIL is selling a great deal of oil to the Assad regime," Szubin, acting Under Secretary for Terrorism and Financial Intelligence with the U.S. Treasury, said at Chatham House in London.
"The two are trying to slaughter each other and they are still engaged in millions and millions of dollars of trade."

"The volumes we are talking about and the amounts of money we are talking about are very sizeable," said Szubin.

Szubin said the "far greater amount" of Islamic State oil ends up under Assad's control while some is consumed internally in Islamic State areas but some ends up in Kurdish regions and Turkey.

"Some is coming across the border into Turkey," Szubin said.

Islamic State militants have made more than $500 million from black market oil sales and looted up to $1 billion from bank vaults in Syria and Iraq, he said in prepared remarks.

"Our sense is that ISIL is taking its profits basically at the wellhead and so while you do have ISIL oil ending up in a variety of different places that's not really the pressure we want when it comes to stemming the flow of funding - it really comes down to taking down their infrastructure," he said.

(Editing by Toby Chopra)