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<ul class="summary-list"><li>The US Treasury sanctioned nearly 50 entities tied to an Iranian shadow-banking network.</li><li>The Treasury says these firms conceal revenue used by Iran's military to support Houthi and Russian operations.</li></ul>Iran's "sprawling" shadow-banking network has fallen into the crosshairs of the US Treasury Department, which sanctioned close to 50 entities and individuals tied to these lenders.In a Tuesday <a target="_blank" href="https://home.treasury.gov/news/press-releases/jy2431">announcement</a>, the department described a web of exchange houses and foreign cover companies that are concealing revenue gained by Iran's military, as well as the Islamic Revolutionary Guard Corps.The Treasury says these funds, equalling billions of dollars since 2020, are helping procure and develop advance weapon systems, such as unmanned aerial vehicles.The hidden revenue is also used to support the actions of the Houthi rebels, a Yemeni group behind the Red Sea attacks on commercial vessels, the release said. Meanwhile, the Treasury says the produced drone weaponry is making its way to Russia, boosting battlefield efforts against Ukraine.Backing this income is the illegal sale of Iranian oil and petrochemicals, according to the announcement. Sanctioned targets reportedly include firms helping launder the revenue generated from this activity, and involve companies in Hong Kong, the United Arab Emirates, and the Marshall Islands."The United States is taking action against a vast shadow banking system used by Iran's military to launder billions of dollars of oil proceeds and other illicit revenue," Deputy Secretary Wally Adeyemo said in the report. "We have sanctioned hundreds of targets involved in Iran's illicit oil and petrochemical-related activity since President Biden took office, and we will continue to pursue those who seek to finance Iran's destabilizing terrorist activities."Iran has previously been accused of fueling Russia's war effort with drone sales, and the Kremlin has <a target="_blank" href="https://www.businessinsider.com/irans-drones-are-the-new-blueprint-for-international-warfare-2024-4">increasingly become reliant on its technology</a>.While Western sanctions have tried to hamper Moscow's own production, Iran has sourced needed manufacturing parts from Asian suppliers, bypassing restrictions placed on the country.The Treasury's new measures come just weeks after it announced a separate slew of <a target="_blank" href="https://www.businessinsider.com/russia-sanctions-us-china-ukraine-war-economy-janet-yellen-treasury-2024-6">wide-sweeping sanctions on Russia-friendly financial institutions</a>, in an effort to slash any remaining financial lifelines keeping Moscow afloat.But while the restrictions will definitely create economic pains for the country, think tank expert Alexandra Prokopenko has warned the move is <a target="_blank" href="https://markets.businessinsider.com/news/currencies/china-yuan-russia-trade-dedollarization-dollar-dominance-war-us-sanctions-2024-6?_gl=1*1c1csrx*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTcxOTQyNjY1Ny4zNjYuMS4xNzE5NDI3MDE0LjYwLjAuMA..">too late to make a major difference</a>.

New US sanctions take aim at Iran's 'sprawling' network of shadow banks fueling Russian and Houthi operations

<ul class="summary-list"><li><keyword id="12062557" type="UNKNOWN" weightage="60" keywordseo="iran" source="Orion">Iran</keyword> said its export revenues from <keyword id="11896879" type="UNKNOWN" weightage="60" keywordseo="oil" source="Orion">oil</keyword> and gas have jumped 60% year-on-year, with <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>'s war in Ukraine pushing up prices.</li><li>Despite the tough <keyword id="12754126" type="UNKNOWN" weightage="60" keywordseo="sanctions" source="Orion">sanctions</keyword> on the country, Iran has generated $2.45 billion from exports in the first two months of the year, the ministry said.</li></ul>Iran has seen revenue from <keyword id="11917806" type="UNKNOWN" weightage="60" keywordseo="energy" source="Orion">energy</keyword> exports jump 60% year-on-year in the last two months, thanks to a sharp rise in market prices.Russian oil ministry official Ali Forouzandeh said the country is seeing a "dramatic" increase in revenues from the sales of oil and related energy products, despite the tough sanctions on the country, Shana <a href="https://en.shana.ir/news/457564/Iran-Oil-Revenue-Collection-60-Y-Y-Official">reported</a> Sunday.Forouzandeh told the state news agency that revenues for the first two months of the calendar year, which began March 21, were $2.45 billion. That compares with $1.5 billion in the same period a year earlier. Russia's invasion of Ukraine in late February has pushed global energy prices up sharply. The UK and US have banned oil imports from Russia. <a href="https://markets.businessinsider.com/news/commodities/eu-embargo-proposal-russian-oil-hungary-veto-exception-pipeline-imports-2022-5">Hungary has opposed</a> the European Union's plan to do the same, but many Western companies are "self-sanctioning."<a href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a> oil, the international benchmark, traded at around $116 per barrel Monday, up roughly 50% since the start of the year.The rise in energy prices has <a href="https://markets.businessinsider.com/news/commodities/russian-oil-gas-prices-exports-triple-current-account-surplus-2022-5">eased some of the financial pain</a> of sanctions slapped on Russia, and has helped Moscow generate foreign currency.It has also benefited Iran, despite its own tough Western sanctions that limit the country's ability to sell its oil. The latest sanctions were put in place by President Donald Trump, after the US pulled out of the Iran nuclear deal in 2018."The receipt of revenues from the export of oil, gas condensate, natural gas, petroleum products and petrochemical products in the first two months of this year has increased dramatically compared to the same period last year," Forouzandeh said, according to Shana.Saudi Arabia has also received a boost, with oil exports reaching a six-year high of $30 billion in March alone, according to the country's statistics office.

Iran's revenue from oil and gas exports has jumped 60% as Russia's war sends energy prices soaring

<keyword id="41896" type="COUNTRY" weightage="100" keywordseo="Iran">Iran</keyword> will cut some benefits to Indian state-run refiners on crude purchases after the South Asian country decided to reduce the amount of oil it buys from the <keyword id="386457" type="UNKNOWN" weightage="20" keywordseo="Persian-Gulf">Persian Gulf</keyword> nation, people with knowledge of the matter said. 
 <keyword id="261045" type="COMPANY" weightage="20" keywordseo="National-Iranian-Oil-Co">National Iranian Oil Co</keyword>. will cut the credit period on crude oil sales to 60 days from 90 days for refiners such as <keyword id="152137" type="COMPANY" weightage="20" keywordseo="Mangalore-Refinery-Petrochemicals-Ltd">Mangalore Refinery &amp; Petrochemicals Ltd</keyword>. and <keyword id="59622" type="CITY" weightage="20" keywordseo="Indian-Oil-Corp">Indian Oil Corp</keyword>., the people said, asking not be identified as the matter isn't public yet. Iran will also reduce the discounts it offers on the shipping of crude to 60 percent from 80 percent, they added. 
 The lower incentives will make Iranian purchases costlier and less competitive in a world awash with crude oil where rivals such as <keyword id="50996" type="COUNTRY" weightage="20" keywordseo="Saudi-Arabia">Saudi Arabia</keyword> and <keyword id="6355112" type="COUNTRY" weightage="20" keywordseo="Iraq">Iraq</keyword> are seeking to expand their markshare. Iran's crude sales to India more than doubled in 2016 after the lifting of sanctions over its nuclear program. India is Iran's second biggest customer and the emerging center of global oil demand. 
 India in turn, is using the supply glut to put pressure on <keyword id="44333" type="COMPANY" weightage="20" keywordseo="Tehran">Tehran</keyword> for securing development rights to the Farzad-B gas field in the Persian Gulf, which was discovered by an Indian consortium led by <keyword id="46585" type="COMPANY" weightage="20" keywordseo="ONGC-Videsh-Ltd">ONGC Videsh Ltd</keyword>. about a decade ago. Iran and India were aiming to conclude an agreement on developing the field by February. The South Asian nation, which stood by Iran during the sanctions, is seeking to invest as much as $20 billion in Iran's energy industry and ports. 
 
Cutting Purchases 
 Indian state-run refiners told Iran last month that they would cut oil purchases by 3 million tons during the financial year that started April 1, the people said. <keyword id="55574" type="CITY" weightage="20" keywordseo="MRPL">MRPL</keyword> and <keyword id="6354412" type="COMPANY" weightage="20" keywordseo="indian-oil">Indian Oil</keyword> will reduce imports by 1 million tons each, while <keyword id="124595" type="COMPANY" weightage="20" keywordseo="Hindustan-Petroleum-Corp">Hindustan Petroleum Corp</keyword>. and <keyword id="124594" type="COMPANY" weightage="20" keywordseo="Bharat-Petroleum-Corp">Bharat Petroleum Corp</keyword>. will cut purchases by about half a million tons each, according to the people. 
 
India's overall oil imports from the Persian Gulf nation touched 19.8 million tons during April-December last year, compared with 12.7 million tons in the 2015-16 financial year, according to oil ministry data. 
 Iran's Oil Minister <keyword id="1921589" type="UNKNOWN" weightage="20" keywordseo="Bijan-Namdar-Zanganeh">Bijan Namdar Zanganeh</keyword> said "there are many other customers" if India decides to cut imports, the state-run <keyword id="1168062" type="ORGANIZATION" weightage="20" keywordseo="Islamic-Republic-News-Agency">Islamic Republic News Agency</keyword> reported on April 5. Reuters earlier reported Indian state refiners will cut oil imports from Iran by a fifth. 
 India's Oil Minister <keyword id="197418" type="PERSON" weightage="20" keywordseo="Dharmendra-Pradhan">Dharmendra Pradhan</keyword> said April 6 that it's up to the state refiners to decide on Iran crude volumes. 
 MRPL spokesman <keyword id="4394862" type="UNKNOWN" weightage="20" keywordseo="prashanth-baliga">Prashanth Baliga</keyword> couldn't comment immediately, while an Indian Oil spokesman declined to comment. National Iranian Oil Co.'s public relations office in Tehran didn't respond to an email and two calls seeking comment.

Iran to cut benefits on oil sales to India. Here's why

<div class="KonaFilter image-container display-table float_right"><div><div class="image">REUTERS/Raheb Homavandi Dancers perform during an event to mark Iran's National Day of Nuclear Technology in Tehran April 8, 2008.</div></div></div>Iran said on Sunday that an accord it struck with world powers on its disputed nuclear programme in exchange for an easing of sanctions will take effect from January 20.
The United States confirmed the news although President Barack Obama warned of a tough road ahead to real a comprehensive solution.
Following are the main points in the interim nuclear deal signed between Iran and the P5+1 -- Britain, China, France, Russia and the United States, plus Germany -- on November 24.
Under the deal Iran agreed to curb parts of its nuclear drive for six months while a "comprehensive solution" is negotiated, in exchange for modest relief from international sanctions and a promise by world powers not to impose new measures against its hard-hit economy.
The sanctions have been imposed to pressure Iran into halting what Western countries fear is a plan to develop a nuclear arsenal and tip the balance of power in the Middle East.
Iran maintains its nuclear drive is for peaceful purposes only.
<h3>Main points</h3>
* Iran has agreed it will not enrich uranium over five percent for the six months.
* Iran has committed to neutralising its entire stockpile of uranium enriched to 20 percent, which is close to weapons-grade and therefore a main area of concern.
Half of this will be diluted to five percent or under. The rest will be oxidised so it can contribute to making fuel for a Tehran reactor that produces medical isotopes.
* Iran will build no new locations for enrichment, and halt progress towards commissioning a reactor at its Arak plant that would produce plutonium that could also be used in a nuclear bomb.
* Iran will not reprocess or construct a facility capable of reprocessing spent fuel from the Arak reactor in order to extract plutonium.
* Iran will allow daily site inspections by experts from the UN nuclear watchdog IAEA at two of its enrichment facilities -- Fordo and Natanz -- and hand over information about the design of its Arak reactor.
* The P5+1 powers and Iran will establish a "joint commission" to work with the International Atomic Energy Agency and monitor implementation of the agreement.
* In return, the P5+1 will ease sanctions in what the White House has described as a "limited, temporary, targeted, and reversible" manner to the tune of about $7 billion, but the "vast bulk" of oil, finance and banking sanctions will remain in place.
* The UN Security Council and European Union will not impose any new nuclear-related sanctions for six months.
* They will suspend US and EU sanctions on Iran's petrochemical exports and associated services such as insurance or transportation, and on gold and precious metals and associated services.
They will also suspend US trade restrictions on Iran's auto industry and associated services and licence the supply and installation in Iran of spare parts for flight safety.
* An agreed amount of revenue from sanctioned Iranian oil sales held abroad will be repatriated.
<div class="nc_footer">
Copyright (2014) AFP. All rights reserved.
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Here Are The Main Points Of The Iran Nuclear Deal

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<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>In this excerpt from <a href="http://www.amazon.com/The-Russia-China-Axis-America%C2%92s-Leadership/dp/1594037566" target="_blank">"The Russia-China Axis: The New Cold War And America's Crisis Of Leadership,"</a> authors Douglas E. Schoen and Melik Kaylan explain how rogue regimes align and use proxies to undermine the US.
"It's very possible that the North Koreans are testing for two countries," a senior American official told the New York Times early in 2013-the other country being Iran. He spoke after an Israeli publication ran an article, "Why Iran Already Has the Bomb," which argued that North Korea and Iran were working together to develop nuclear weapons. 
By this line of thinking, North Korea's successful nuclear test meant that, for all intents and purposes, Iran had acquired a nuclear weapon as well.
Sound far-fetched? Not to close observers of the situation. 
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>Iranians have been present at every North Korean nuclear and missile test. Iranian engineers attended the North's April 2012 launch of the Unha-3 long-range missile. That launch failed, but the Iranians helped analyze the failure and address the problems. "For more than a decade, Pyongyang and Tehran have run what is essentially a joint missile-development program," says Gordon Chang. And North Korea "almost certainly provides missile flight-test data to Iran."
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Are the Iranians using North Korea as a conduit for their own nuclear ambitions? Hard evidence so far is lacking, but the connections and circumstances all point to the fact that North Korea is selling the Iranians nuclear technology in a mutually beneficial relationship that gives the Iranians the know-how they need while providing Pyongyang with economic and political assistance.
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>Despite some advancement on this front, at least vis-a`-vis Iran, an Iran-North Korea nuclear proliferation nexus would negate American efforts to restrict Iran's weapons-development programs, because North Korea already has a nuclear weapon and could transfer it at will.
The likely Iran-North Korea collaboration underscores an important point: The United States is up against a series of Axis relationships, not just that involving Russia and China or those involving their rogue-state clients. The rogues themselves work together, both in concert with and independent of their sponsors.
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>In 2011, Al Jazeera reported on a leaked UN report indicating that "North Korea and Iran have been exchanging ballistic-missile technology in violation of UN sanctions." The report suggested that the two countries transferred prohibited technologies "on regular scheduled flights of Air Koryo and Iran Air." Even more explosively, it indicated, through several diplomats who insisted on anonymity, that a third country had served as an outlet for the transfers-China. 
The growing Iran-North Korea partnership masks the fact that, on the surface at least, the two nations appear about as different from each other as can be imagined. North Korea is an impoverished, secular dictatorship in Asia, while Iran is a Middle East theocracy with a growing middle class. 
The basis of their relationship is not history or culture, but rather a common enemy and a willingness to work with each other in spite of <keyword id="6356001" type="COMPANY" weightage="60" keywordseo="international">international</keyword> isolation. Iran provides North Korea with foreign currency, which, due to oil sales, it has in reasonable abundance, while North Korea sends Iran missiles and other weapons technologies unobtainable elsewhere. 
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It is this nexus that Claudia Rosett refers to as the "axis of proliferation." As Rosett points out, the two nations make nearly perfect partners: 
Iran, with its visions of empire, has oil money. Cash-hungry North Korea has nuclear technology, an outlaw willingness to conduct tests, and long experience in wielding its nuclear ventures to extort concessions from the U.S. and its allies. 
Both countries are adept at spinning webs of front companies to dodge sanctions. Both are enriching uranium. The stage is set for North Korea, having shopped ever more sophisticated missiles to Iran, to perfect and deliver the warheads to go with them.
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Troubling as all of this is, it gets worse: Strong evidence points to both countries' participation in what Rosett calls "the evolving global webs of illicit proliferation activities." Both countries were involved, for example, in the nuclear-proliferation network run by Pakistani nuclear scientist A.Q. Khan. These proliferation webs depend heavily on Chinese influence, and Beijing has facilitated these procurement efforts in multiple ways, whether as direct provider or middleman. 
There is also compelling, if not yet confirmable, evidence that Iran and North Korea have shared expertise on tunnel construction for military purposes. In 1974, South Korean forces discovered a highly sophisticated system of massive tunnels located under the Demilitarized Zone (DMZ) between North and South Korea. Equipped with railroads, electricity, and vehicle transports, it was 35,000 meters long. 
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A generation later, in the wake of the Israeli-Hezbollah war of 2006, Israeli forces discovered large networks of tunnels close to the Israeli border that were extraordinarily similar to those constructed under the Korean DMZ. As part of its schemes to bring in foreign capital, North Korea in the past has been known to lend out its tunneling expertise for a price. 
Ronen Bergman, a senior officer in the Iranian Revolutionary Guard who defected, said, "Thanks to the presence of hundreds of Iranian engineers and technicians, and experts from North Korea who were brought in by Iranian diplomats . . . Hezbollah succeeded in building a 25-kilometer subterranean strip in South Lebanon." Indeed, Beirut officials believe it likely that Iranian sources passed the tunnel-construction blueprints on to Hezbollah, having obtained them first from North Korea.
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Barring an almost impossible coincidence, the tunnels in Lebanon were based on North Korean plans-meaning that either the North Koreans built the tunnels or Iran passed the plans on to Hezbollah. Either way, the tunnels episode makes clear how Iran and North Korea, already dangerous enough themselves, can serve as enablers of technology proliferation for still more dangerous, unpredictable third parties. In this case, the technology involved only tunnels. Next time, it might involve nukes. 
Excerpted with permission from <a href="http://www.amazon.com/The-Russia-China-Axis-America%C2%92s-Leadership/dp/1594037566" target="_blank"></a><a href="http://www.amazon.com/The-Russia-China-Axis-America%C2%92s-Leadership/dp/1594037566" target="_blank">"The Russia-China Axis: The New Cold War And America's Crisis Of Leadership"</a> by Douglas Schoen and Melik Kaylan. <a href="https://twitter.com/danielhalper" target="_blank"></a>Excerpted with permission by Encounter Books. Copyright © 2014. All rights reserved. 
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Why North Korea and Iran make nearly perfect partners

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Pete Souza/White House</div></div></div>The <keyword id="6356037" type="ORGANIZATION" weightage="60" keywordseo="white-house">White House</keyword> has released a fact sheet <a href="http://www.businessinsider.com/obama-statement-iran-deal-sanctions-nuclear-program-2013-11" target="_blank">on the deal reached between six world powers and Iran</a> on the country's nuclear program.
Here's the full document, with key details:
Halting the Progress of <keyword id="41896" type="COUNTRY" weightage="60" keywordseo="Iran">Iran</keyword>'s Program and Rolling Back Key Elements
Iran has committed to halt enrichment above 5%:
<ul>
<li>Halt all enrichment above 5% and dismantle the technical connections required to enrich above 5%.</li>
</ul>
Iran has committed to neutralize its stockpile of near-20% uranium:
<ul>
<li>Dilute below 5% or convert to a form not suitable for further enrichment its entire stockpile of near-20% enriched uranium before the end of the initial phase.</li>
</ul>
Iran has committed to halt progress on its enrichment capacity: 
 
<ul>
<li>Not install additional centrifuges of any type.</li>
</ul>
<ul>
<li>Not install or use any next-generation centrifuges to enrich uranium.</li>
</ul>
<ul>
<li>Leave inoperable roughly half of installed centrifuges at Natanz and three-quarters of installed centrifuges at Fordow, so they cannot be used to enrich uranium.</li>
</ul>
<ul>
<li>Limit its centrifuge production to those needed to replace damaged machines, so Iran cannot use the six months to stockpile centrifuges. </li>
</ul>
 
<ul>
<li>Not construct additional enrichment facilities. </li>
</ul>
 
Iran has committed to halt progress on the growth of its 3.5% stockpile:
<ul>
<li>Not increase its stockpile of 3.5% low enriched uranium, so that the amount is not greater at the end of the six months than it is at the beginning, and any newly enriched 3.5% enriched uranium is converted into oxide.</li>
</ul>
Iran has committed to no further advances of its activities at Arak and to halt progress on its plutonium track. Iran has committed to:
<ul>
<li>Not commission the Arak reactor. </li>
</ul>
 
<ul>
<li>Not fuel the Arak reactor.</li>
</ul>
<ul>
<li>Halt the production of fuel for the Arak reactor.</li>
</ul>
<ul>
<li>No additional testing of fuel for the Arak reactor.</li>
</ul>
<ul>
<li>Not install any additional reactor components at Arak.</li>
</ul>
<ul>
<li>Not transfer fuel and heavy water to the reactor site.</li>
</ul>
<ul>
<li>Not construct a facility capable of reprocessing. Without reprocessing, Iran cannot separate plutonium from spent fuel. </li>
</ul>
 
Unprecedented transparency and intrusive monitoring of Iran's nuclear program 
Iran has committed to:
<ul>
<li>Provide daily access by IAEA inspectors at Natanz and Fordow. This daily access will permit inspectors to review surveillance camera footage to ensure comprehensive monitoring. This access will provide even greater transparency into enrichment at these sites and shorten detection time for any non-compliance.</li>
</ul>
<ul>
<li>Provide IAEA access to centrifuge assembly facilities.</li>
</ul>
<ul>
<li>Provide IAEA access to centrifuge rotor component production and storage facilities.</li>
</ul>
<ul>
<li>Provide IAEA access to uranium mines and mills.</li>
</ul>
<ul>
<li>Provide long-sought design information for the Arak reactor. This will provide critical insight into the reactor that has not previously been available. </li>
</ul>
<ul>
<li>Provide more frequent inspector access to the Arak reactor.</li>
</ul>
<ul>
<li>Provide certain key data and information called for in the Additional Protocol to Iran's IAEA Safeguards Agreement and Modified Code 3.1. </li>
</ul>
 
Verification Mechanism 
The IAEA will be called upon to perform many of these verification steps, consistent with their ongoing inspection role in Iran. In addition, the P5+1 and Iran have committed to establishing a Joint Commission to work with the IAEA to monitor implementation and address issues that may arise. The Joint Commission will also work with the IAEA to facilitate resolution of past and present concerns with respect to Iran's nuclear program, including the possible military dimension of Iran's nuclear program and Iran's activities at Parchin.
Limited, Temporary, Reversible Relief 
In return for these steps, the P5+1 is to provide limited, temporary, targeted, and reversible relief while maintaining the vast bulk of our sanctions, including the oil, finance, and banking sanctions architecture. If Iran fails to meet its commitments, we will revoke the relief. Specifically the P5+1 has committed to:
<ul>
<li>Not impose new nuclear-related sanctions for six months, if Iran abides by its commitments under this deal, to the extent permissible within their political systems. </li>
</ul>
<ul>
<li>Suspend certain sanctions on gold and precious metals, Iran's auto sector, and Iran's petrochemical exports, potentially providing Iran approximately $1.5 billion in revenue. </li>
</ul>
<ul>
<li>License safety-related repairs and inspections inside Iran for certain Iranian airlines.</li>
</ul>
<ul>
<li>Allow purchases of Iranian oil to remain at their currently significantly reduced levels - levels that are 60% less than two years ago. $4.2 billion from these sales will be allowed to be transferred in installments if, and as, Iran fulfills its commitments.</li>
</ul>
<ul>
<li>Allow $400 million in governmental tuition assistance to be transferred from restricted Iranian funds directly to recognized educational institutions in third countries to defray the tuition costs of Iranian students.</li>
</ul>
Humanitarian Transactions
Facilitate humanitarian transactions that are already allowed by U.S. law. Humanitarian transactions have been explicitly exempted from sanctions by Congress so this channel will not provide Iran access to any new source of funds. Humanitarian transactions are those related to Iran's purchase of food, agricultural commodities, medicine, medical devices; we would also facilitate transactions for medical expenses incurred abroad. We will establish this channel for the benefit of the Iranian people. 
Putting Limited Relief in Perspective 
 
In total, the approximately $7 billion in relief is a fraction of the costs that Iran will continue to incur during this first phase under the sanctions that will remain in place. The vast majority of Iran's approximately $100 billion in foreign exchange holdings are inaccessible or restricted by sanctions. 
In the next six months, Iran's crude oil sales cannot increase. Oil sanctions alone will result in approximately $30 billion in lost revenues to Iran - or roughly $5 billion per month - compared to what Iran earned in a six month period in 2011, before these sanctions took effect. While Iran will be allowed access to $4.2 billion of its oil sales, nearly $15 billion of its revenues during this period will go into restricted overseas accounts. In summary, we expect the balance of Iran's money in restricted accounts overseas will actually increase, not decrease, under the terms of this deal. 
Maintaining Economic Pressure on Iran and Preserving Our Sanctions Architecture
During the first phase, we will continue to vigorously enforce our sanctions against Iran, including by taking action against those who seek to evade or circumvent our sanctions. 
<ul>
<li>Sanctions affecting crude oil sales will continue to impose pressure on Iran's government. Working with our international partners, we have cut Iran's oil sales from 2.5 million barrels per day (bpd) in early 2012 to 1 million bpd today, denying Iran the ability to sell almost 1.5 million bpd. That's a loss of more than $80 billion since the beginning of 2012 that Iran will never be able to recoup. Under this first step, the EU crude oil ban will remain in effect and Iran will be held to approximately 1 million bpd in sales, resulting in continuing lost sales worth an additional $4 billion per month, every month, going forward.</li>
</ul>
<ul>
<li>Sanctions affecting petroleum product exports to Iran, which result in billions of dollars of lost revenue, will remain in effect.</li>
</ul>
<ul>
<li>The vast majority of Iran's approximately $100 billion in foreign exchange holdings remain inaccessible or restricted by our sanctions. </li>
</ul>
<ul>
<li>Other significant parts of our sanctions regime remain intact, including:</li>
<ul>
<li>Sanctions against the Central Bank of Iran and approximately two dozen other major Iranian banks and financial actors; </li>
<li>Secondary sanctions, pursuant to the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA) as amended and other laws, on banks that do business with U.S.-designated individuals and entities; </li>
<li>Sanctions on those who provide a broad range of other financial services to Iran, such as many types of insurance; and,</li>
<li>Restricted access to the U.S. financial system.</li>
</ul>
</ul>
<ul>
<li>All sanctions on over 600 individuals and entities targeted for supporting Iran's nuclear or ballistic missile program remain in effect.</li>
</ul>
<ul>
<li>Sanctions on several sectors of Iran's economy, including shipping and shipbuilding, remain in effect.</li>
</ul>
<ul>
<li>Sanctions on long-term investment in and provision of technical services to Iran's energy sector remain in effect.</li>
</ul>
<ul>
<li>Sanctions on Iran's military program remain in effect.</li>
</ul>
<ul>
<li>Broad U.S. restrictions on trade with Iran remain in effect, depriving Iran of access to virtually all dealings with the world's biggest economy.</li>
</ul>
<ul>
<li>All UN Security Council sanctions remain in effect.</li>
</ul>
<ul>
<li>All of our targeted sanctions related to Iran's state sponsorship of terrorism, its destabilizing role in the Syrian conflict, and its abysmal human rights record, among other concerns, remain in effect. </li>
</ul>
 
A Comprehensive Solution 
 
During the six-month initial phase, the P5+1 will negotiate the contours of a comprehensive solution. Thus far, the outline of the general parameters of the comprehensive solution envisions concrete steps to give the international community confidence that Iran's nuclear activities will be exclusively peaceful. With respect to this comprehensive resolution: nothing is agreed to with respect to a comprehensive solution until everything is agreed to. Over the next six months, we will determine whether there is a solution that gives us sufficient confidence that the Iranian program is peaceful. If Iran cannot address our concerns, we are prepared to increase sanctions and pressure.
Conclusion
In sum, this first step achieves a great deal in its own right. Without this phased agreement, Iran could start spinning thousands of additional centrifuges. It could install and spin next-generation centrifuges that will reduce its breakout times. It could fuel and commission the Arak heavy water reactor. It could grow its stockpile of 20% enriched uranium to beyond the threshold for a bomb's worth of uranium. Iran can do none of these things under the conditions of the first step understanding.
Furthermore, without this phased approach, the international sanctions coalition would begin to fray because Iran would make the case to the world that it was serious about a diplomatic solution and we were not. We would be unable to bring partners along to do the crucial work of enforcing our sanctions. With this first step, we stop and begin to roll back Iran's program and give Iran a sharp choice: fulfill its commitments and negotiate in good faith to a final deal, or the entire international community will respond with even more isolation and pressure.
The American people prefer a peaceful and enduring resolution that prevents Iran from obtaining a nuclear weapon and strengthens the global non-proliferation regime. This solution has the potential to achieve that. Through strong and principled diplomacy, the United States of America will do its part for greater peace, security, and cooperation among nations.

Here Are All The Details We Know On The Iran Deal

Iran Stretched Its Laws To Expand Khamenei's Grip On The Economy

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Denis BalibouseU.S. Secretary of State John Kerry (R) shakes hands with Iranian Foreign Minister Mohammad Javad Zarif after a ceremony at the United Nations in Geneva November 24, 2013.</div></div></div>GENEVA (<keyword id="76338" type="CITY" weightage="60" keywordseo="Reuters">Reuters</keyword>) - President Barack Obama has pulled off a historic deal with Iran on curbing its nuclear program but he and other global leaders now have tough work ahead turning an interim accord into a comprehensive agreement.
In a sign of how difficult the coming talks will be, some differences emerged between U.S. Secretary of State John Kerry and his Iranian counterpart in their public presentation of a key part of the deal - whether or not Iran preserved the right to enrich uranium.
Obama also has to persuade its ally Israel, whose Prime Minister Benjamin Netanyahu denounced the deal as a "historic mistake," that the accord will reduce and not increase the threat from its arch foe Iran. And he has to sell the accord to skeptics in Congress, including some in his own Democratic Party, who have been pressing for more sanctions on Iran.
The breakthrough accord was reached in the middle of the night at talks in Geneva between Iran, the United States, China, Russia, France, Britain and Germany. It won the critical endorsement of Iranian clerical Supreme Leader Ayatollah Ali Khameini and marked a clear turn in a U.S. relationship with Iran that has been fraught since the 1979 Islamic Revolution, and vexed for years over the Iranian nuclear program.
But nobody doubted that tough work lies ahead in moving on from the initial deal that allows a six-month period of limits to Iran's nuclear program in exchange for up to $7 billion worth of sanctions relief, while leaving both the program and the sanctions in place.
"Now the really hard part begins and that is the effort to get the comprehensive agreement, which will require enormous steps in terms of verification, transparency and accountability," Kerry said as he began a meeting with British Foreign Minister William Hague in London.
The agreement, which halts Iran's most sensitive nuclear activity, its higher-grade enrichment of uranium, was tailored as a package of confidence-building steps towards reducing decades of tension and ultimately creating a more stable, secure Middle East.
<h3>SANCTIONS RELIEF</h3>
Iranian Foreign Minister and chief negotiator Mohammad Javad Zarif flew home from Geneva to a welcoming crowd, a reflection of the relief felt by many Iranians exhausted by isolation and sanctions that have been particularly punishing in the last two years.
Zarif said in an interview broadcast on state television that Iran would move quickly to start implementing the agreement and it was ready to begin talks on a final accord.
"In the coming weeks - by the end of the Christian year - we will begin the program for the first phase. At the same time, we are prepared to begin negotiations for a final resolution as of tomorrow," Zarif said.
Illustrating the delicate dance that looms, he and Kerry differed in their public descriptions of the part of the agreement regarding Iran's right to enrich uranium.
Sunday's agreement said Iran and the major powers aimed to reach a final deal that would "involve a mutually defined enrichment program with mutually agreed parameters consistent with practical needs, with agreed limits on scope and level of enrichment activities."
Before heading to Geneva, Zarif had a crucial meeting with Khamenei in the presence of Rouhani, a senior member of the Iranian delegation said.
"The leader underlined the importance of respecting Iran's right to enrich uranium and that he was backing the delegation as long as they respected this red line," said the delegate.
What emerged in the text on Sunday was wording that both sides could live with.
Speaking on Iran's Press TV, Zarif said the deal was an opportunity for the West to restore trust with Iran, adding Tehran would expand cooperation with the International Atomic Energy Agency, the U.N. nuclear watchdog, to address what he called some concerns.
"In the final step, the (uranium) enrichment process will be accepted and at the same time all the sanctions will be lifted," Zarif said.
However, on the ABC News program "This Week," Kerry stressed that such a right would be limited and would come about as a result of future negotiations.
He said that under the terms of the agreement, "there will be a negotiation over whether or not they could have a very limited, completely verifiable, extraordinarily constrained program, where they might have some medical research or other things they can do, but there is no inherent right to enrich..."
<h3>CRITICS AT HOME AND ABROAD</h3>
The deal also leaves Washington with the task if patching strained ties with its staunch Middle East ally Israel.
Obama telephoned Netanyahu to reassure him that Washington would continue to stand by Israel and to suggest that the United States and Israel should quickly start consultations on the Iranian nuclear issue.
Obama - who raised the idea of a rapprochement with Iran when he was campaigning ahead of his first presidential election win in 2008 - will also have to deal with critics at home.
On Sunday, even some of his fellow Democrats were strongly critical of the pact. Senator Charles Schumer of New York, the No. 3 Democrat in the Senate and a Banking Committee member said: "A fairer agreement would have coupled a reduction in sanctions with a proportionate reduction in Iranian nuclear capability."
But it seemed likely that Congress will give him room to see if the agreement works.
Democrats such as Senator Robert Menendez of New Jersey, who chairs the Senate Foreign Relations Committee and is known as a hawk on Iran, made clear that any new sanctions would include a six-month window before they took effect. That would allow time to see if Iran is sticking by the pact.
Senators have been discussing for months imposing even tighter Iran sanctions, which could anger Tehran and put Sunday's interim deal reached in Geneva in jeopardy. And pro-Israel lobbying organizations - among the most effective interest groups in Washington - have failed so far to persuade lawmakers to tighten the sanctions screw on Iran.
The agreement does not need to be ratified by Congress and Obama is using his executive power to temporarily suspend some existing U.S. sanctions on Iran.
The deal halts Iran's progress on its nuclear program, including construction of the Arak research reactor. It will neutralize Iran's stockpile of uranium refined to a fissile concentration of 20 percent, which is close to the level needed for weapons, allow increased U.N. nuclear inspections, and halt uranium enrichment over a fissile purity of 5 percent.
In return the accord grants about $7 billion in potential relief from sanctions. It will allow a potential access to $1.5 billion in trade in gold and precious metals and the suspension of some sanctions on Iran's auto sector and petrochemical exports, and also give Iran access to some $4.2 billion in sales from its reduced oil exports.
(Additional reporting by Stephanie Nebehay, Fredrik Dahl, John Irish, Arshad Mohammed, Justyna Pawlak in Geneva, Alexei Anischuk and Katya Golubkova in Moscow, Isabel Coles, Jon Hemming and Yara Bayoumy in Dubai, Caren Bohen, Patricia Zengerle and Will Dunham in Washington, Dan Williams and Jeffrey Heller in Jerusalem; Editing by Frances Kerry and Grant McCool)

Now The Really Hard Part Starts After Landmark Iran Nuclear Deal

BEIJING (Reuters) - China may buy more Iranian oil next year as a state trader is negotiating a new light crude contract that could raise imports from Tehran to levels not seen since tough Western sanctions were imposed in 2012, running the risk of upsetting Washington.
An increase would go against the spirit of November's breakthrough agreement relaxing some of the stringent measures slapped on Iran two years ago over its nuclear program.
The November deal between Tehran and the group known as P5+1 -- made up of the United States and five other global powers -- paused efforts to reduce Iran's crude sales but required buyers to hold to "current average amounts" of Iranian oil imports.
That agreement was seen as a reward for a softer diplomatic tone from Tehran that was forced, some U.S. officials and lawmakers say, by U.S. and EU sanctions that slashed Iran's oil exports by more than half to about 1 million barrels per day (bpd) and cost it as much as $80 billion in lost revenue.
But industry sources say Chinese state-trader Zhuhai Zhenrong Corp, which was sanctioned by Washington in early 2012 for supplying gasoline to Iran, is in talks with the National Iranian Oil Company (NIOC) for a new contract for condensate.
However, it was not clear how much of the light crude would be imported through any new term deal. Zhenrong or others could also continue buying condensate through spot deals.
"If they do step up imports from Iran, they are risking more sanctions from the U.S.," said a trader with a Western trading house that sells to China. "The Chinese government may make some noises if overall imports from Iran rise too much, but not if there is a slight increase."
Zhenrong, an affiliate of China's defense authorities in the 1990s, acts largely as an import agent for China Petroleum and Chemical Corp, or Sinopec, whose refineries process Iranian crude.
Zhenrong also buys a small amount for a PetroChina-controlled refinery.
The new condensate contract would be through a subsidiary, Tianjin Zhenrong International Energy Corp, for delivery to independent petrochemical plant Dragon Aromatics in southeast China's Fujian province, the sources said.
Dragon Aromatics since around August has been buying from Zhenrong on a spot basis about 66,000 bpd of condensate produced from Iran's giant South Pars gas project.
A Zhenrong spokesperson declined to comment on any negotiations and whether they ran the risk of putting the company under pressure from Washington.
"More pressure? Do you think they really care?" said a former Zhenrong trader. Zhenrong, with no investments in the United States that could be targeted, has long thought it could be folded into a larger state company as a crude oil desk and probably has few concerns about any future sanctions, he said.
Besides the new deal, Iran's largest trade partner and oil customer China is set to roll over its existing import volumes of about 505,000 bpd.
Actual imports from Iran in the first 11 months of this year have been lower at 421,520 bpd, down 0.6 percent on year, according to Chinese customs figures, due to pressure from the Western sanctions. China's total imports from Iran averaged about 530,500 bpd in the year prior to the sanctions.
Of the total for next year, Zhuhai Zhenrong is set to renew its annual supply deal at around 240,000 bpd, not including any new deal for condensate.
"It's almost done, and the volume will be the same," said a trading official with direct knowledge of the supply talks. Senior Zhenrong officials may visit Tehran in the coming weeks to put final touches on the 2014 agreement, the official said.
Zhenrong was set up around 1995 to take oil from Tehran in payment for arms Beijing supplied during the 1980-88 Iran-Iraq war. It has been a commercial state-run enterprise since 1998.
<h3>UNIPEC</h3>
The balance of China's contract volumes from Iran would be going to Sinopec, through its trading vehicle Unipec.
Unipec agreed with NIOC early last year to an 8-year oil contract to end-2019 to lift around 265,000 bpd, about a quarter of which is condensate, according to a second trading official.
Under U.S. and European sanctions, Sinopec has been lifting below those contractual volumes to win waivers to the U.S. measures every six months, with one official estimating the cut at 11-13 percent. Sinopec has filled the gap mainly with Iraqi and Russian supplies.
Waivers for China, India and South Korea were extended in November.
China's waiver, together with November's diplomatic breakthrough, may have taken some pressure off the U.S.-listed Sinopec, the world's single largest Iranian oil processor, to make further cuts.
"It's at Sinopec's discretion to decide whether to perform the contractual volume," said a second trading official. "But the contract is there, signed through end of 2019."
A Sinopec spokesperson said he was not aware of the contract and was unable to comment.
Since November, Sinopec has loaded slightly above contractual rates following a meeting the previous month between Iran's deputy oil minister Ali Mojedi and a Sinopec executive in charge of trading, said the second official.
But Sinopec may not risk raising imports significantly higher before more progress is made on easing sanctions on Iran.
"There are still potential risks without signs of sanctions being lifted in a meaningful way," said a procurement official with a Sinopec refinery.
(Reporting by Chen Aizhu; Editing by Manash Goswami and Tom Hogue)

China Is Planning To Buy Up More Iranian Oil Amid Tense Nuclear Talks

<ul class="summary-list"><li>Russia is using illicit cash channels to fund covert activities, analysts say.</li><li>An expert took Insider through how the networks operate. </li></ul>Russia is using covert financial networks to fund its purchases of banned weapons technology, getting round Western sanctions in the process, analysts told Insider.They described in unusual detail how the schemes work.Pavlo Verkhniatskyi, a member of the International Working Group on Russian sanctions, provided exclusive insight to Insider on how Russia is exploiting the financial system.He said this helps it buy microchips, specialised tools, and other key components used to build the missiles and drones it launches every day at Ukraine."Money is poured into the financial system and becomes, you know, a driving force or fuel for those black operations," said Verkhniatskyi, referring to Russia's covert tech procurement programs.He called on the West to shift the focus of its sanctions regime and target the networks he described. He said attempts so far had only mixed success. The Russian embassy in the UK did not immediately respond to a request for comment.<h2>Dubious banks, and suitcases full of cash and diamonds </h2>Verkhniatskyi, citing Ukrainian government sources, described the financial channels Russia is using to fund its covert weapons part trade. He said that a favored tool is cash — usually the proceeds of the government's oil and gas sales. That money, he said, is then placed in accounts in countries such as Turkey and the UAE, where western sanctions are not closely enforced. Under Western sanctions, banks must investigate suspicious transactions to make sure they're not being used to circumvent sanctions. So Russia attempts to obscure the real source of the money by using intermediary banks. The purchases, Verkhniatskyi said, are brokered by networks of shell companies, which are often covers for Russian intelligence, These firms usually buy the sanctioned goods from trading firms or retailers in bulk he said.Countries <a href="https://www.businessinsider.com/ukraine-how-russia-gets-us-tech-cruise-missiles-despite-sanctions-2023-8?r=US&amp;IR=T">like Kazakhstan and Armenia,</a> with traditionally close ties to Russia and weaker business laws, are used as bases for the shell companies. Verkhniatskyi described the shell companies as "sleeping bears" some of which were set up before the invasion and were ready to activate once Western sanctions began to bite.Banks dealing in dollars, the world's default currency, in theory have to comply with American sanctions or face reprisals from the US government.But Kremlin agents have other options available that don't involve bank transfers that could trigger such checks, Verkhniatskyi said. Some shell company agents hand over suitcases full of cash to suppliers or other valuables."There is also information on Russians using diamonds as payment methods for sanctioned goods," Verkhniatskyi said, citing Ukrainian government sources. His claims are backed by a recent report by the <a href="https://news.exeter.ac.uk/faculty-of-humanities-arts-and-social-sciences/continued-use-of-illicit-finance-by-russia-threatens-international-security-and-democracy-new-report-warns/" target="_blank" rel="noopener">UK's Serious Organised Crime &amp; Anti-Corruption Evidence</a> group. It found that the Kremlin's illicit cash flows are not just funding its tech procurement programs, but also disinformation campaigns and militant groups."Illicit finance is now an integral part of Russia's foreign and security policy," wrote Professor David Lewis from the University of Exeter in the study. "It is also critical to the Russian military and security services, enabling illicit defence supply chains, facilitating military deployments overseas, and funding a growing array of parastate military units."But Russia lacks the capacity to buy the large numbers of banned tech items it needs through cash handovers alone, meaning it remains vulnerable to attempts to restrict the flow of Kremlin money through banks.<h2>Blacklisting Russia </h2>Verkhniatskyi said a vital step would be Russia on the blacklist of the Financial Action Task Force blacklist, an inter-governmental organization meant to stop financial wrongdoing. The move effectively isolates a country from the world's banking systems. The FATF briefly suspended Russia in the wake of the Ukraine invasion, a largely symbolic move meaning it was restricted from involvement at a leadership level.But it has so far hesitated in taking the more serious step of blacklisting Russia, amid concerns it could impact the neutrality of the FATF, and might not be effective. Only three countries were blacklisted as of October 2023: North Korea, Iran, and Myanmar. A larger "grey list" of more than 25 countries also does not feature RussiaBut Verkhniatskyi dismissed these concerns, and said that not punishing Russia was doing more damage to the institution's credibility. "I think that the authority of FATF is undermined when they sit at the same table with the criminal state and keep on you know, working as normal," he said.The FATF did not immediately respond to a request for comment from Insider.

Russia is using bags of cash and diamonds to avoid sanctions and fund its weapons program, expert says

ISIS is now the wealthiest terrorist organization on the planet, according to <a href="http://www.foreignpolicy.com/articles/2014/07/28/baghdadis_hillbillies_isis_iraq_syria_oil_terrorism_islamic_state?wp_login_redirect=0" target="_blank">Foreign Policy</a>. And the Al Qaeda offshoot has the ambition and perhaps even the organization needed to put its piles of oil and smuggling-related profits to work, as its several-hundred page-long <a href="http://www.scribd.com/doc/230182635/Isis-Annual-Report-2013" target="_blank">annual report</a> from this past March demonstrates. 
For example, ISIS <a href="http://docs.house.gov/meetings/FA/FA00/20140723/102485/HHRG-113-FA00-Wstate-McGurkB-20140723.pdf">brings</a> in nearly $12 million a month in revenues from extortion and other shady practices in the Iraqi city of Mosul alone in addition to $1 million to $3 million a day <a href="http://www.foreignpolicy.com/articles/2014/07/28/baghdadis_hillbillies_isis_iraq_syria_oil_terrorism_islamic_state">selling oil illegally</a>. 
Some experts believe that the group's power is virtually unprecedented, at least among jihadist organizations. According to Janine Davidson and Emerson Brookings of the Council on Foreign Relations, ISIS sits atop "<a href="http://blogs.cfr.org/davidson/2014/07/24/isis-hasnt-gone-anywhere-and-its-getting-stronger/">a volume of resources and territory unmatched in the history of extremist organizations.</a>" The group controls <a href="http://www.brookings.edu/research/opinions/2014/08/23-un-strikes-back-at-isil-black-economy" target="_blank">approximately 60% of Syria's oil fields</a> and several oil producing assets in Iraq. 
<div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div>Luay Al-Khatteeb, founder of the Iraq Energy Institute and visiting fellow at the Brookings Institution, <a href="http://www.brookings.edu/research/opinions/2014/08/23-un-strikes-back-at-isil-black-economy">estimates</a> ISIS's total revenue from oil production at approximately $2 million a day. 
<h3>Oil Wealth</h3>
"Put simply, ISIS is in a position to smuggle over 30,000 barrels of crude oil a day to neighboring territories and countries at a price of between $25 to $60 per barrel depending on the number of middle-men involved," <a href="http://www.brookings.edu/research/opinions/2014/08/23-un-strikes-back-at-isil-black-economy" target="_blank">Khatteeb wrote</a> for Brookings.
ISIS allegedly sells much of its oil production to intermediaries in Syria, who then transport it to refineries in Turkey, Iran, and Kurdistan, <a href="http://www.foreignpolicy.com/articles/2014/07/28/baghdadis_hillbillies_isis_iraq_syria_oil_terrorism_islamic_state?wp_login_redirect=0" target="_blank">Foreign Policy</a> reported. 
Robin Mills, a director at Manaar Energy and author of <a href="http://www.amazon.com/The-Myth-Oil-Crisis-Geopolitics/dp/0313364982" target="_blank">The Myth Of The Oil Crisis</a>, explained that individuals and nations involved in the sale of oil on the black market would be open to U.S. and EU sanctions as well as Iraqi legal action, if the state were ever to re-establish control over areas that ISIS now rules.
 "The practical impact of this may not be much given the small volumes and the difficulty of tracking buyers and sellers," Mills told Business Insider by email. 
<h3>Control Of Water, Wheat, And Electricity </h3>
<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>
Oil isn't the only resource that ISIS has leveraged to its advantage. In a recent interview with <a href="http://www.spiegel.de/international/world/brookings-scholar-explains-the-disturbing-rise-of-the-islamic-state-a-987294.html" target="_blank">Der Spiegel</a>, Brookings Doha Center fellow <a href="http://www.brookings.edu/experts/listerc" target="_blank">Charles Lister</a> explains how ISIS uses its control of food and water supplies to further its goals:
Money is key here. It is well-known that the IS is almost entirely self-financed. Its money comes from the control and illicit sale of oil and gas, agricultural products like wheat, the control of water and electricity and from imposing taxes within areas it controls. It is literally earning millions of dollars each week, and a great deal of this money is pumped into social services.
ISIS's advance throughout northern Iraq has put vast quantities of prime farmland under the control of the militant organization. <a href="http://www.businessinsider.com/r-exclusive-islamic-state-militants-seize-wheat-from-state-silos---iraq-grain-board--2014-13">Large portions</a> of five of Iraq's most fertile provinces are currently under ISIS control. 
These provinces are collectively responsible for producing 40% of the country's wheat crop. The militants have also raided between <a href="http://www.reuters.com/article/2014/08/13/us-iraq-security-islamicstate-wheat-idUSKBN0GD14720140813">40,000 and 50,000 tons of grain</a> from government silos in the north of the country. 
Al Arabiya reported that ISIS has <a href="http://english.alarabiya.net/en/News/2014/08/13/ISIS-militants-seize-wheat-from-state-silos-.html">transported</a> at least 700 tons of grain from western Iraq into Syria for milling and refining. ISIS then proceeded to sell the grain to the Iraqi government through third-parties in order to raise further funds. 
ISIS has expanded this effort recently by making flour using the grain it stole from government mills throughout Mosul. 
<center>
<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/hashtag/ISIS?src=hash">#ISIS</a> Began producing flour from government mills in <a href="https://twitter.com/hashtag/Mosul?src=hash">#Mosul</a>,and libel it under their name. <a href="http://t.co/JgCnqglAbS">pic.twitter.com/JgCnqglAbS</a>
- Ammar karim (@ammar_afp) <a href="https://twitter.com/ammar_afp/statuses/504554833467416576">August 27, 2014</a></blockquote>

</center>
A source at Iraq's Agricultural Ministry <a href="http://www.businessinsider.com/r-exclusive-islamic-state-militants-seize-wheat-from-state-silos---iraq-grain-board--2014-13">told</a> Reuters that ISIS has placed close to 30% of Iraq's entire farm production at risk.
This scarcity and food insecurity has driven up prices and increased the windfall that ISIS receives from its wheat trade. 
<div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div>Control of water resoucres and hydroelectric power stations provide further funding for ISIS. 
The <a href="http://www.dailystar.com.lb/News/Middle-East/2014/Jul-21/264554-isis-gains-highlight-aggressive-use-of-water-as-weapon-of-war.ashx#axzz3BVxBYJhy">control</a> of massive pieces of infrastructure, such as the Tabqa Dam outside of ISIS's de facto capital of Raqqah, Syria, along with the group's short-lived seizure of the Mosul Dam in Iraq, further demonstrates ISIS's capabilities and ambitions.
Ariel I. Ahram, an assistant professor at Virginia Tech's School of Public and <keyword id="6356001" type="COMPANY" weightage="60" keywordseo="international">International</keyword> Affairs, <a href="http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/02/for-isis-its-oil-and-water/">notes</a> that the Tabqa Dam provides a steady stream of revenue for ISIS.
The dam generates electricity for Aleppo and the surrounding region. ISIS fighters made sure that the dam's staff was left relatively unmolested, in order to ensure that the dam remained operational. 
<h3>A Mafia-Like Organization</h3>
<div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div>ISIS collects taxes on a variety of commercial items, such as trucks and cellphone towers, according to Ahram. Raqqa's Credit Bank has <a href="http://www.nytimes.com/2014/07/24/world/middleeast/islamic-state-controls-raqqa-syria.html?hp&amp;action=click&amp;pgtype=Homepage&amp;version=LedeSum&amp;module=first-column-region&amp;region=top-news&amp;WT.nav=top-news&amp;_r=1">transformed</a> into a functioning tax authority, with shop owners paying $20 every two months to ISIS in exchange for utilities and security.
ISIS functions a lot like a criminal syndicate. "The group is like the Mafia. It really doesn't discriminate in how it gets its money," Colin Clarke, an associate political scientist at Rand Corporation, <a href="http://www.cbc.ca/news/world/isis-by-the-numbers-how-big-strong-and-rich-the-militant-organization-may-be-1.2746332">told</a> CBC News. "Anything that's a revenue-generating activity, this group is engaged in."
ISIS has branched out into for-profit crime, engaging in extortion, carjacking, and kidnapping. Kidnappings have become an especially lucrative source of funding for the organization as the group targets foreigners, an attempts to ransom them.
ISIS <a href="http://www.businessinsider.com/isis-james-foley-ransom-payment-2014-8">demanded</a> a $123 million ransom for journalist James Foley before executing him. The militants have set <a href="http://www.businessinsider.com/isis-demands-66-ransom-for-american-woman-2014-8">a $6.6 million ransom</a> for the release of an American aid worker they had kidnapped in Syria.
As ISIS militants continue to rule sections in Syria and Iraq, these history-rich regions have spurred a black market for ancient artifacts, which ISIS <a href="http://www.ibtimes.com/how-isis-pillages-traffics-sells-ancient-artifacts-global-black-market-1605044">has reportedly taken advantage of</a>. One senior intelligence official <a href="http://www.theguardian.com/world/2014/jun/15/iraq-isis-arrest-jihadists-wealth-power">told T</a><a href="http://www.theguardian.com/world/2014/jun/15/iraq-isis-arrest-jihadists-wealth-power">he Guardian</a> that ISIS (back when it was known as the Islamic State of Iraq) had used looted antiquities as a revenue source when its members began moving into eastern Syria in late 2012.
In all, <a href="http://www.cbc.ca/news/world/isis-by-the-numbers-how-big-strong-and-rich-the-militant-organization-may-be-1.2746332">estimates</a> place ISIS' total revenue at somewhere between $1 million and $4 million daily. Some of that money goes towards paying fighters and building their "caliphate" to resemble something like an actual state. But the group has a massive and ever-growing war chest to match its <a href="http://www.businessinsider.com/isis-military-equipment-breakdown-2014-8">weapons stocks</a>, <a href="http://www.businessinsider.com/isis-controls-shocking-percentage-of-iraq-and-syria-2014-6">territorial domain</a>, and <a href="https://news.vice.com/article/isis-fighters-and-their-friends-are-total-social-media-pros">propaganda</a>. 
It's little wonder that some commentators believe the group could become more dangerous than Al Qaeda itself.

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