The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on several companies and an individual involved in illicit gold and diamond trade. These targeted entities are connected to the notorious Russian military group known as PMC Wagner (Wagner Group) and its founder, Yevgeniy Prigozhin. The Wagner Group has previously faced sanctions from the United States, the European Union (EU), Canada, and the United Kingdom (UK) for its involvement in violent activities around the world.
The sanctioned companies, operating in the Central African Republic (CAR), United Arab Emirates (UAE), and Russia, have been found to engage in illegal dealings of gold and diamonds to finance the Wagner Group’s expansion and support its armed forces. The illicit funds are used to sustain the Wagner Group’s operations in Ukraine, Africa, and other regions. Additionally, the sanctioned individual has played a central role in Wagner Group activities in Mali.
Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, said, “Treasury’s sanctions disrupt key actors in the Wagner Group’s financial network and international structure. The Wagner Group funds its brutal operations in part by exploiting natural resources in countries like the Central African Republic and Mali. The United States will continue to target the Wagner Group’s revenue streams to degrade its expansion and violence in Africa, Ukraine, and anywhere else.”
Simultaneously, several U.S. government departments, including State, Treasury, Labor, Commerce, Homeland Security, and the United States Agency for International Development, have issued a new advisory focused on the gold sector in sub-Saharan Africa. The advisory aims to raise awareness about the risks associated with the trade of these precious resources, such as conflict and terror financing, money laundering, sanctions evasion, human rights abuses, labour rights violations, and environmental degradation.
Among the sanctioned entities is Midas Ressources SARLU (Midas), a mining company based in the CAR. Midas, affiliated with Yevgeniy Prigozhin, holds mining concessions and licenses for prospecting and extracting minerals, including gold and diamonds. It is estimated that Midas possesses gold valued at over one billion dollars in the Ndassima gold mine in the CAR. Midas, in collaboration with the Wagner Group, has obstructed CAR government officials from inspecting the mine.
Another sanctioned entity is Diamville SAU, a gold and diamond purchasing company operating in the CAR. Diamville, controlled by Prigozhin, is deeply involved in the CAR’s mining sector. In 2022, Diamville participated in a scheme to sell CAR-origin gold and convert it into U.S. dollars. Diamville also shipped diamonds mined in the CAR to buyers in the UAE and Europe.
Industrial Resources General Trading, a Dubai-based industrial goods distributor, has provided financial support to Prigozhin through its dealings with Diamville. In early 2022, Industrial Resources received diamonds mined in the CAR and sold by Diamville.
The Russia-based Limited Liability Company DM (OOO DM) also participated in the gold selling scheme and has been designated by OFAC.
The Wagner Group, acting as a proxy military force for the Kremlin, has a long history of committing human rights abuses and exploiting natural resources across various African countries. It has participated in combat operations globally, including Russia’s controversial war in Ukraine. The Wagner Group has faced sanctions from several countries, including Australia, Canada, Japan, the United Kingdom, and the European Union, for its destabilising activities.