US imposes sanctions on gold companies linked to Wagner mercenaries.

The U.S. Treasury Department has taken action against multiple companies accused of using illicit gold sales to support Russia’s Wagner mercenary group.

In an announcement on June 27, the Treasury revealed that it had imposed sanctions on four companies in the Central African Republic (CAR), United Arab Emirates (UAE), and Russia. These entities are alleged to have engaged in illegal gold dealings to fund Wagner operations and expand the group’s armed forces.

Additionally, Andrey Nikolayevich Ivanov, a Wagner executive, has been sanctioned for his involvement in mining and weapons deals in Mali on behalf of Wagner chief Yevgeny Prigozhin.

“Treasury’s sanctions disrupt key actors in the Wagner Group’s financial network and international structure,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.

The four companies targeted by the U.S. sanctions are: Central African Republic-based Midas Resources SARLU (Midas) and Diamville SAU (Diamville); Dubai-based Industrial Resources General Trading (Industrial Resources); and Russia-based Limited Liability Company DM (OOO DM).

The Treasury alleges that Wagner, acting as a proxy military force of the Kremlin, has committed widespread human rights abuses and exploited natural resources in multiple African countries.

“The Wagner Group funds its brutal operations in part by exploiting natural resources in countries like the Central African Republic and Mali,” Nelson stated.

“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,” he added.

The Russian embassy in Washington has not yet responded to the sanctions.

Wagner forces, known for their involvement in some of the bloodiest battles in Ukraine, have also fought in Libya, Syria, the Central African Republic, and Mali, among other locations.

In January, the United States designated Wagner as a transnational criminal organization responsible for widespread human rights abuses, while the Kremlin accused Washington of unjustly “demonizing” the group.

Recently, Wagner gained attention when its forces left Ukraine and marched on Moscow in an act of rebellion against Russia’s top military leaders.

Wagner Beginnings

The Wagner Group, officially known as PMC Wagner or Wagner Private Military Company, is a Russian paramilitary organization that first emerged in 2014 when it supported pro-Russian separatists in eastern Ukraine.

Although private military companies are technically illegal in Russia, Wagner has operated with state backing. Its ambiguous legal status has allowed it to function as an unofficial armed wing of the Kremlin on sensitive foreign missions.

In 2012, Russian President Vladimir Putin, then serving as prime minister, expressed support for the creation of private military companies as tools of Russian influence abroad.

In November 2022, Wagner opened an office in St. Petersburg, where Putin once served as mayor and Prigozhin ran a restaurant frequented by Putin.

According to British intelligence, in December 2022, Wagner formally registered as a legal entity, listing its core activity as “management consultancy” with no mention of combat services.

The company was named after the old callsign “Vagner” of former Russian Spetsnaz commander Dmitry Utkin, who is widely believed to be the group’s founder, although his actual role in its establishment remains unclear, as noted by the Center for Strategic and International Studies.

Utkin himself, along with Wagner operatives, participated in Russian operations in Ukraine in 2014, the same year Russia annexed Crimea.

Since its inception, Wagner has significantly expanded its operations and has been active in the Central African Republic, M