In addition to these two coalition initiatives to erode ISIL’s major financial pillars, the struggling economies of Iraq and Syria have also hindered ISIL’s ability to generate revenues. Citing economic hardship, the Iraqi government has discontinued salaries to thousands of government employees located in ISIL-controlled territory, whom ISIL tax at high rates. Moreover, historically low oil prices have reduced the profitability of ISIL’s oil operations. The difficulty of producing and smuggling cheap oil across borders has led ISIL to sell most of its oil locally in Iraq and Syria at steeply discounted prices.
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