Oil and Corruption in Iraq Part II: Smuggling Thrives in Basra

BASRA, Iraq, September 11, 2007 (ENS) – Police and government officials are accused of taking a cut of the lucrative oil smuggling business run by clans and overseen by militia groups in the southern city of Basra.

Rival Shia groups have divided up control of the city’s resources – including the country’s only seaport as well as its largest oilfields – in a precarious power arrangement which could implode at any time. The warring militias control the illegal oil exports from Basra, the gateway to Iran and the Gulf states, and are reportedly linked to global networks.


Maritime police complain they lack resources to capture the smugglers, but others accuse police of cooperating with mafia gangs to smuggle oil. Some local officials say they are under orders not to arrest gang members because of their links to the authorities and the militias.

Analysts blame smuggling for causing high inflation in Basra, Iraq’s second largest city, with the prices of everyday products soaring and living conditions deteriorating for most of inhabitants.

ENS