ISIS's finances are taking a serious hit, and it's hurting morale inside the terrorist group

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Photo: Youtube screenshot

As a US-led coalition hammers ISIS’s oil infrastructure and other financial institutions in the Middle East, the terrorist group has cut salaries and infighting has broken out within the rank and file and senior leadership.

Reports of infighting within ISIS — aka the Islamic State, ISIL, or Daesh — aren’t new, but increased financial and territorial losses might be worsening the stress fractures that are splintering the group.

The Washington Post reported on Monday that ISIS is now facing an “unprecedented cash crunch” as the coalition ramps up strikes on its sources of wealth. Strikes have been hitting oil refineries and tankers as well as banks and buildings that hold hard cash.

ISIS salaries are taking a hit as a result of the financial losses. Some units reportedly aren’t being paid at all, and some fighters’ salaries have been cut in half, according to The Post.

The salary cuts specifically appear “to have significantly hit the organization’s morale,” according to Charles Lister, a resident fellow at the Middle East Institute.

“There are more and more frequent reports … of infighting, armed clashes breaking out in the middle of the night in places like Raqqa between rival factions,” Lister said on Friday during a panel discussion in Washington, DC, referring to ISIS’s de-facto capital in Syria.

“These are all indications of a significant drop in morale and a decrease in internal cohesion. And the cohesion argument was always something that analysts like myself always said was one of ISIS’ strongest strengths,” he said.

Part of what has made ISIS’s message so potent is the money that has come along with it — which is said to be a major factor in ISIS’s recruiting success. For locals in war-torn Syria especially, ISIS has been able to offer more money than people could hope to make elsewhere.

But the salary cuts have strained the loyalties of fighters to the group.

Abu Sara, a 33-year-old engineer from Iraq, told The Post that ISIS members are becoming disillusioned.

“Their members are getting quite angry. Either they are not getting salaries or getting much less than they used to earn,” Sara said. “All of the people I am in contact with want to escape, but they don’t know how.”

Some fighters “throw down their weapons and mingle with the civilians” in battle, according to Sara.

ISIS’s financial problems are compounded by the group’s territorial losses. Syrian forces recently retook the ancient city of Palmyra, while Iraqi forces are starting to move in toward Mosul, ISIS’s stronghold in Iraq.

Territorial losses could hurt ISIS’s recruiting efforts because they run counter to the group’s central message of “remaining and expanding.”

The losses also hit at ISIS’s coffers because taxation and extortion make up a large share of ISIS’s revenues. Unlike other terrorist groups that rely on outside donations from wealthy individuals, ISIS squeezes money from the local populations it controls.

But ISIS isn’t likely to disappear anytime soon.

Hisham al-Hashimi, an Iraqi military strategist, told The Post that ISIS still controls significant oil resources across the territory it holds in Iraq and Syria.

“They’re not going through a financial crisis that will lead to their collapse,” Hashimi told the newspaper. “They still have 60 percent of Syrian oil wells and 5 percent of Iraq’s.”

 

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