The 15-nation Council warned in a joint statement that buying oil from militant groups such as ISIL and Jabhat Al-Nusra fighting in Iraq and Syria could lead to sanctions.

"Such engagement constitutes financial support for terrorists and may lead to further sanctions listings," the council said.

Russia presented the statement in late June, seeking to clamp down on terrorist groups who are selling the oil from militants-controlled areas.

Terrorist groups such as ISIL and Al-Nusra have seized oilfields and pipelines to bankroll their offensives.

The council said control of oil facilities "could generate material income for terrorists, which would support their recruitment efforts, including of foreign terrorist fighters, and strengthen their operational capability to organize and carry out terrorist attacks."

Trade of oil with the militant groups is in violation of UN resolutions and "all states are required to ensure that their nationals and any persons within their territory do not trade in oil with these entities," it said.

The Syrian Observatory of Human Rights said last week that ISIL terrorists in Syria were selling oil and gas to Iraqi businessmen.

ISIL insurgents took control of large parts of Iraq's north and west in a sweeping offensive that began on June 9, preventing Baghdad from exporting oil via a pipeline to Turkey and by road to Jordan.

NJF/NJF