Tag Archives: Islamic State

Egypt Announces That There Is No Evidence of Terrorism in Russian Plane Crash

On Monday, 14 December, Egyptian officials reported that so far, they have found no evidence of terrorism or other illegal action linked to the 31 October crash of a Russian passenger plane in Sinai, which killed all 224 people on board. The plane came down en route to Russia from the resort of Sharm el-Sheikh.

While Russian and Western governments have previously reported that the Airbus A321, which was operated by Metrojet, was likely brought down by a bomb, with a group linked to the so-called Islamic State (IS) group claiming responsibility and stating that it had managed to smuggle an explosive on board, Egypt’s civil aviation ministry has indicated that it has completed a preliminary report on the crash, adding that it had so far found no evidence of a criminal act. In a statement, the ministry disclosed that “the technical investigative committee has so far not found anything indicating any illegal intervention or terrorist action.” Russia had previously reported that a bomb brought down the Metrojet Airbus, after finding what it said were “traces of foreign explosives” on the debris. It has vowed to “find and punish” the perpetrators.”

In response to Monday’s findings, Kremlin spokesman Dmitry Peskov re-iterated that “our experts concluded this was a terrorist attack.”

What is known is that the plane crash has affected Egypt’s tourism industry, which is a cornerstone of the economy. According to the country’s tourism minister, tourism revenues for 2015 will be at least 10% below last year’s.  The plane took off from Sharm el-Sheikh, a Red Sea resort that is popular with British and Russian holidaymakers. Furthermore, the incident has raised serious questions about airport security, which has prompted both Britain and Russia to suspend flights into Sharm el-Sheikh. Egypt is now also facing a two-year Islamist insurgency in the Sinai, which has killed hundreds of soldiers and police. Shortly after the 31 October plane crash, IS stated that the bombing was in response to Russian airstrikes in Syria. Last month, IS’ magazine published a photo of what it claimed was the improvised bomb that brought down the airliner. The picture in Dabiqu showed a Schweppes Gold soda can and what appears to be a detonator and a switch.

Latest Report Indicates More Journalist Hostages but Fewer Imprisoned in 2015

In its annual report, which was published on 15 December, media rights group Reporters Without Borders (RSF) disclosed that while fewer journalists were imprisoned this year, the number held hostage increased, noting that China and Egypt were named the worst nations for jailing media workers.

According to the RSF, the number of journalists put in prison fell fourteen percent in 2015 from last year. Furthermore, fifty-four professional journalists were held hostage in 2015, an increase of 35 percent from the last year. The reports points to Syria as the country with the highest number of reporters in the hands of extremist or criminal groups at 26. The report also indicates that the so-called Islamic State (IS) group alone holds eighteen journalists, largely in Syria and neighbouring Iraq.

The report also described China as “the world’s biggest prison for journalists,” followed by Egypt, adding that Iran and Eritrea were also condemned for jailing members of the press.

RSF secretary-general Christophe Deloire noted that “a full-blown hostage industry has developed in certain conflict zones.” He highlighted Yemen as being the newest problem country for reporters, with thirty-three journalists kidnapped by Houthi militias and al-Qaeda militants in 2015, compared with just two in the previous year. According to Deloire, “we are very alarmed by the increase in the number of reporters held hostage in 2015. The phenomenon is above all linked to the big surge in abductions of journalists in Yemen.”

Meanwhile lawless Libya had the largest number of journalists reported missing this year. With eight members of the press unaccounted for, the RSF noted that the political climate “makes it harder to conduct investigations to locate missing journalists.”

IS Moving Further Into Libya in a Bid to Gain Access to Oil

On 14 December, French Defense Minister Jean-Yves Le Drian reported that the so-called Islamic State (IS) group is spreading from its stronghold on the Libyan coast to the interior of the country, with the aim of getting access to oil wells.

Speaking to RTL radio, Le Drian stated that “they are in Sirte, their territory extends 250 kilometres (155 miles) along the coast, but they are starting to penetrate the interior and to be tempted by access to oil wells and reserves.” Libya has 48 billion barrels of proven crude oil reserves, the largest in Africa and the ninth biggest in the world.

News of IS’ spread further into Libya comes as world powers are trying to convince the country’s warring factions to lay down their weapons and to fall behind a new national unity government, warning that IS-allied groups are continuing to exploit the ongoing political chaos in a bid to take parts of the country.

Sources have reported that last week, French planes carried out surveillance flights over Libya. Comments by the French Defense Minister are likely to be a reference to reported attempts by IS militants to expand from Sirte into the town of Ajdabiya in the east. In recent weeks, there have been increasing reports of the presence of extremist groups in the town, however it remains unclear whether they are affiliates of al-Qaeda or IS. However if IS successfully manages to expand into Ajdabiya, then this could cut off oil supplies from that part of the country, where key oil terminals are located. In October, there was at least one failed attack by IS militants at the gates of Es Sidr oil terminal. Furthermore, throughout this year, other smaller oil fields in central Libya have also been attacked.

Libya has slipped into chaos since the fall of Moamer Kadhafi in 2011, which IS has exploited. The United Nations believes that there are between 2,000 and 3,000 fighters operating in the country, including 1,500 in the coastal city of Sirte. Since August 2014, when an Islamist-backed milia alliance overran Tripoli, Libya has had rival administrations.

US Officials Warn that IS Oil Trade ‘Worth More than $500m’

On Friday, 11 December, a United States Treasury official disclosed that the so-called Islamic State (IS) group has made more than US $500 million (£330m) in trading oil.

According to Adam Szubin, despite its ongoing battle to over throw the regime in Syria, IS’ “primary customer” has been the government of the country’s President Bashar al-Assad, stating, “the two are trying to slaughter each other and they are still engaged in millions and millions of dollars of trade.” He added that the group is estimated to be making as much as US $40 million a month from the oil trade, including from buyers in Turkey. Szubin has further disclosed that IS had also looted up to US $1 billion from banks in territory that it held.

Szubin has indicated that cutting off the group’s cash flow is a key part of the coalition strategy to defeat IS, noting that unlike other designated terrorist groups, IS has not relied on funding from foreign donors but has instead generated money from its own operations.

For over a year now, the US-led coalition has been bombing IS targets, including oil facilities, in Syria and in neighbouring Iraq. Recently, the US-led coalition launched a military campaign, dubbed Tidal Wave 2, which has seen air strikes intensify on IS oil fields, refineries and tankers that are being used by the group. According to findings focusing on late 2015 from UK defense consultancy HIS, IS currently generates around US $80 million a month, mainly from oil revenues, adding that it found that other sources of income include taxation, drug and antiquities smuggling, robbery and kidnapping and the sale of electricity.

Questions Surface About Whether Turkey Really Gets Its Oil from IS

In early December, Russian President Vladimir Putin suggested that the decision by Turkey to shoot down a Russian military aircraft in late November was “dictated by the desire to protect the oil supply lines to Turkish territory.” His remarks, which occurred at a news conference on 1 December, effectively implied that the Turkish government was not only complicit in the smuggling of oil produced in areas of Syria that are controlled by the so-called Islamic State (IS) group, but that it was also so heavily committed to this trade that it was willing to provoke an international crisis in a bid to protect it.

While it is doubtful whether President Putin genuinely believes this accusation, it has raised the issue of the possible dealings between Turkish government agencies and IS. Furthermore, by putting forth such an accusation, President Putin has the chance to gain propaganda points in his tussle with Turkish President Recep Tayyip Erdogan and in some ways, it may legitimize recent Russian attacks on targets in parts of Syria that are held by non-IS rebel forces backed by Turkey. Amongst these attacks were the destruction of a large bakery built by the Turkish IHH Humanitarian Relief Foundation.

While the ongoing Syrian conflict has given rise to an extensive war economy, in which deals are struck between a number of partners, that include groups that are fighting each other on the battlefield, the smuggling of oil and petroleum products from Syria into neighbouring Turkey has been going on for decades, as traders and security officials have cashed in on the difference in prices that have been created by the heavy subsidies in Syria.

However with the ongoing civil war in Syria, the trade of oil and petroleum products has vastly evolved and in 2014, it saw IS take over much of the production of crude and refining business along the Euphrates river valley. This effectively represented about one-third of the country’s pre-conflict oil capacity, with most of the remainder under Kurdish control.

While there are many steps before oil produced under IS control reaches an end-user, it is highly likely that Turkish business people, customs officials and intelligence agents are amongst the people implicated. However it must be noted that the scale of the entire trade is small compared with Turkey’s own energy economy, in which Russia plays a dominant role. Furthermore, most of the participants are within Syria.

According to widely reported estimates, in mid-2015, oil fields under the control of IS produced between 30,000 and 40,000 barrels per day. Sources have disclosed that the supply chain entailed IS selling crude to traders, who would then transport it to small refineries that were set up in IS-controlled areas. The petrol and diesel produced in these refineries was then sold across Syria and Iraq, while any surplus was smuggled across the border, mainly to Turkey. While the quality of these products was poor, many buyers, particularly those in rebel-controlled areas, had little other option and typically paid a heavy premium over international prices. While IS was able to profit from the well-head sales, as well as gain from taxes along the supply chain, the profitability of the Syrian illicit oil trade was hit by the collapse in world oil prices in October 2014.

Oil purchased at the well-head for US $20 – 25 per barrel in mid-October could end up in Turkey being sold at below the world market price of over US $100/barrel, effectively yielding health profits to everyone involved. For a trader to make a profit selling bad quality Syrian products in Turkey now the well-head price would have to be much lower, and this would not necessarily make commercial sense for IS.

Since mid October-2014, the IS oil business has been further hit as US and French jets have started to target well-head facilities and tanker trucks for the first time. Furthermore, Kurdish and local Arab rebels have also seized an oil field from IS in the southern province of Hassakeh.

Turkey relies almost entirely on imports for its total oil consumption, which is about 720,000 barrels per day. A large number of those imports come from Russia. In 2014, Russia also supplied 27 billion cubic metres of natural gas to Turkey, effectively representing 56% of its total consumption. Russia was also Turkey’s largest source of imports, supplying goods worth US $2.3 billion, or more than 10% of Turkey’s total imports.