IS relying on local retailers to financially remain afloat

Iraqi prosecutors claim Islamic State (IS) fighters are resorting to “special offer” sales to liquidate products in local markets and generate revenue to continue military operations.

In a recent report by the Iraqi Higher Judicial Council, detained IS members admitted the extremist group is dumping goods on Iraqi markets through third party retailers, liquidating their stockpiles and lining their war coffers.

“Confessions of this group clarified that the organization has recently resorted to an indirect mechanism of funding by sending goods to its suppliers who will later sell them to retailers,” the report claims.

The new method of generating revenue is due to the loss of an illicit multi-million dollars-generating oil and gas smuggling ring that was dismantled by US-led coalition strikes.

IS oil revenues plummeted by as much as 90 percent from a high of $80 million monthly in 2015.

Recent reports suggest IS has stopped paying salaries to its militants in certain areas.

According to Iraqi authorities, the insurgent group is dumping cheap food supplies on local markets to make up for the lack of cash.

“The retailers sell the goods in the Iraqi market under the banner of ‘Special Offer’ to attract more customers,” the Judicial Council said.

The low prices are causing the local economy to suffer by forcing businessmen to remain competitive.

Mosul has been under IS control since 2014, after the group emerged in northern Iraq and took over the city.

It is estimated that over 400,000 people remain trapped in IS-held neighborhoods of Mosul.