Syrian Jails Were an Extortion Machine Funding Ousted Rulers

This picture shows empty cells at the Saydnaya prison, north of the Syrian capital Damascus, on December 15, 2024. (AFP)
This picture shows empty cells at the Saydnaya prison, north of the Syrian capital Damascus, on December 15, 2024. (AFP)
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Syrian Jails Were an Extortion Machine Funding Ousted Rulers

This picture shows empty cells at the Saydnaya prison, north of the Syrian capital Damascus, on December 15, 2024. (AFP)
This picture shows empty cells at the Saydnaya prison, north of the Syrian capital Damascus, on December 15, 2024. (AFP)

Ousted Syrian leader Bashar al-Assad's vast network of prisons was not simply a tool of his brutal crackdown on opposition to his rule, it was a money-making machine for his supporters.

Desperate Syrians, clinging to the dream of seeing missing sons, husbands and sisters again, say they were systematically shaken down for bribes that together amounted to hundreds of millions of dollars.

And, worse, in many cases the assorted officials, lawyers, grifters and Assad clan hangers-on demanding the cash failed to deliver news of the detainees, many tens of thousands of whom are now dead, rights monitors say.

Sanaa Omar, a 38-year-old woman from the northern city of Aleppo, came to the capital Damascus seeking news of her brother Mohammed, who went missing when he was 15.

"My brother has been missing since 2011," she told AFP at a city hospital morgue where opposition fighters had deposited unidentified corpses found in Damascus prisons.

"We looked in all of the prisons in Aleppo, in all of the branches. We paid everyone: lawyers would promise us they knew where he was and said they would bring documents, but they never did.

"My dad would go every year to Damascus and meet with lawyers or people who would say they work with the government. They would take 200,000 or 300,000 or 400,000 (Syrian pounds) and we'd pay them," she said.

"They'd say: 'You'll see him in month'. We'd wait for one month, two months, three months... but they never brought us a visitor's pass. We paid them for nearly five years, but in the end, we lost hope."

Two years ago, before last week's dramatic collapse of the Assad's rule in the face of a lightning offensive by opposition fighters, a rights group tried to estimate how much detainees' families had paid over the years.

- Abandoned ledgers -

The Association of Detainees and Missing Persons at Saydnaya prison carried out hundreds of interviews to ask how much families had paid in return for the promise of information, a visit or a release from jail.

Based on its data, the association estimated that government officials and supporters had made almost $900 million. Hundreds of thousands of people have been detained since protests erupted against Assad's rule in early 2011.

Now, 13 years later, the gates of Saydnaya Prison, a grim, grey-walled complex squatting over an arid valley dotted with plush villas 30 kilometers (18 miles) north of Damascus, hang open.

Instead of paying officials or intermediaries for scraps of information, relatives leaf desperately through abandoned ledgers looking for news of the missing.

"I'm looking for my brother. He's been in Saydnaya since 2019," said Hassan Hashem, a thickset young man who came from the city of Hama in a last desperate attempt to find answers.

"My brother used to come and visit him, but they took him a year ago for re-investigation at Branch 28. After that we tried to follow him and people were taking money from us for information.

"'He'll get out today. He'll get out tomorrow.' We paid more than $12,000. He's married and has four daughters. He never did anything wrong," Hashem said, his face darkening with anger.

When his brother, convicted of "international terrorism and bearing arms against the state", was moved to the Mazzeh air base in Damascus, the family was put in touch with the relative of a senior regime official.

"He said they'd need $100,000 to get him out. I told him if I sold my entire village I wouldn't make $100,000. Where am I supposed to get that kind of money?"

Now awed civilians and armed opposition fighters wander Saydnaya's cell-lined concrete halls, kicking over the filthy abandoned sleeping mats that show inmates were packed 20 to a cell.

Rescuers have punched holes in walls to investigate rumors of secret levels housing missing prisoners, but many thousands of families are disappointed -- their relatives are probably dead and may never be found.

- Mother's Day promise -

On the ground floor of one wing, fighters and visitors pause in front of a hydraulic press that former detainees say was used to crush prisoners during torture sessions.

The floor of a neighboring room, with more industrial equipment, is slick with foul-smelling grease.

Ayoush Hassan, 66, came from the Aleppo countryside to find her son.

"A month ago, I paid 300,000 Syrian pounds for them to check his record, and they said he is in Saydnaya and is in good health," she told AFP outside the jail, her anger rising as despair gripped her.

"Not here. Not here. He's not with us!" she cried, describing how she had found court records burnt, and as a crowd gathered to hear of her grief.

"We want our children, alive, dead, burned, ashes, buried in mass graves... just tell us," she said.

"They lied to us. We've been living on hope. We've been living on hope for 13 years, thinking he'll get out this month, in the next two months or this year or on Mother's Day... it's all lies."



Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.