US Imposes Sanctions on Companies Tied to Russia’s Wagner Group Amid Illicit Gold Dealings

The United States has recently taken action against the Wagner Group, a Russian mercenary force, by imposing sanctions on companies allegedly involved in illicit gold dealings to fund the group’s operations. In a statement, the US Treasury Department announced that four companies based in the United Arab Emirates, Central African Republic, and Russia would be subject to sanctions for their connections to the Wagner Group and its leader, Yevgeny Prigozhin. The Treasury Department claims that these companies engaged in illegal gold transactions to sustain and expand the militia, particularly in conflict areas such as Ukraine and certain African countries.

Here are some key points for you:

1. Funding through Illicit Gold Dealings: The US Treasury Department accuses the Wagner Group of financing its operations by exploiting natural resources in countries like the Central African Republic and Mali. The sanctioned companies allegedly participated in gold trading to provide financial support to the group, allowing it to maintain and expand its armed forces.
2. Degrading the Wagner Group’s Expansion: Brian Nelson, the Treasury Department’s Under Secretary for Terrorism and Financial Intelligence, emphasized the US’s intention to target the Wagner Group’s revenue streams and undermine its expansion and violent activities in Africa, Ukraine, and other locations. The sanctions aim to degrade the group’s financial capabilities and hinder its operations.
3. Wagner Group’s Presence in Africa: Despite previous discussions regarding the withdrawal of Wagner mercenaries from Africa, Russian Foreign Minister Sergei Lavrov stated that the private military contractors would remain in the Central African Republic and Mali, where the group is heavily deployed. The Wagner Group has faced allegations of committing atrocities in these countries.
4. Concerns about Wagner’s Activities: The US State Department has expressed ongoing criticism of the Wagner mercenaries, accusing them of bringing death, destruction, and harm to local populations wherever they go. They are also accused of exploiting resources and communities for their gain. The US advises governments in Africa and elsewhere to cease any cooperation with the Wagner Group.
5. Sanctioned Companies: The companies targeted by the US sanctions include Midas Ressources SARLU and Diamville SAU based in the Central African Republic, Industrial Resources General Trading in Dubai, and Limited Liability Company DM in Russia. These companies are alleged to have been involved in illicit gold dealings that directly supported the Wagner Group’s activities.

The US sanctions against companies connected to the Wagner Group highlight concerns about the group’s operations and the alleged exploitation of natural resources in conflict-affected regions. By targeting the revenue streams of these companies, the US aims to limit the Wagner Group’s ability to sustain and expand its military capabilities. The ongoing presence of Wagner mercenaries in Africa has raised widespread concerns due to the alleged atrocities committed. The US urges governments to sever ties with the group to prevent further harm and exploitation.

Source: https://www.theguardian.com/us-news/2023/jun/27/us-sanctions-gold-companies-connected-wagner-group