Saturday, November 9, 2024

Wagner Group profits from gold trade, US says

The US government issued a 29-page advisory on 27 June warning that the Russian paramilitary organisation, the Wagner Group, and its leader, Yevgeny Prigozhin, are being funded by the illegal gold trade.

The Wagner Group made headlines last weekend when it appeared to be on the verge of overthrowing the government of Russian President Vladimir Putin.

The advisory – issued by the Treasury Department, State Department and several other federal agencies – notes that “the gold sector is critical to the economies and communities of many sub-Saharan African countries”, but adds that there are “numerous risks” associated with the industry, including “conflict and terror financing, money laundering activities, sanctions evasion, human rights and labour abuses, and environmental degradation”.

It says that “U.S. persons and entities involved in the gold sector – whether as miners, traders, refiners, exporters, users, consumers, financial institutions, or otherwise – should carefully consider [these risks] and ensure that they conduct enhanced due diligence to address these risks”.

The Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned four gold and precious stones companies it says are linked to the Wagner Group and Prigozhin. (Wagner and Prigozhin are already sanctioned by OFAC).

The four companies are:Midas Resources SARLU, Central African Republic. According to OFAC, Midas is affiliated with Prigozhin and holds several mining concessions and licences for the prospecting and extraction of minerals, metals and precious stones in the Central African Republic (CAR). It also receives most of the output from the country’s Ndassima gold mine, which produces an estimated $1 billion in gold annually.

Diamville SAU, Central African Republic. OFAC alleges that Prigozhin-controlled Diamville sold gold mined in the Central African Republic to companies in Europe and the United Arab Emirates, and that it participated in a scheme to convert CAR gold into US dollars in 2022.

Industrial Resources General Trading, UAE. This industrial goods distributor was named for allegedly purchasing diamonds and gold from Diamville.

Limited Liability Company DM, Russia. Also known as OOO DM, this company participated in Diamville’s scheme to convert CAR gold into US dollars, according to OFAC.

The Wagner Group has a long history of diamond trading in the Central African Republic. The Kimberley Process banned CAR diamonds in 2013, but has allowed diamond shipments from certain “compliant zones” since 2016.

US citizens and companies with a US presence are prohibited from engaging in transactions with companies on the OFAC list, and sanctioned individuals may not conduct business in dollars or own property in the United States.

Alice
Alice
Alice is a seasoned jewelry designer renowned for her exquisite creations that seamlessly blend artistry with elegance. With a passion for craftsmanship and an unwavering commitment to quality, Alice has established herself as a distinguished figure in the world of fine jewelry. Drawing inspiration from diverse cultures and artistic movements, Alice brings a unique perspective to her designs, creating pieces that transcend mere accessories to become timeless works of art. Her meticulous attention to detail and insistence on using only the finest materials ensure that each creation reflects not only her artistic vision but also a commitment to unparalleled craftsmanship. Having honed her skills through years of dedicated practice and a keen understanding of evolving trends, Alice is adept at translating her clients' desires into bespoke, one-of-a-kind pieces. Her portfolio encompasses a range of styles, from classic and timeless to avant-garde and contemporary, showcasing her versatility and ability to cater to a diverse clientele.

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