The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took significant action to counteract Russia’s destabilizing activities in Africa. OFAC announced sanctions against two companies, Mining Industries SARLU and Logistique Economique Etrangere SARLU, that are linked to the notorious Wagner Group in the Central African Republic (CAR). This move is part of a broader effort by the United States to disrupt the Wagner Group’s operations and protect the sovereignty and stability of African nations.
Who is the Wagner Group?
The Wagner Group is a private military company (PMC) from Russia that operates globally. Known for its involvement in military conflicts and political interference, the group has a dark history of human rights abuses and exploitation of natural resources. The Wagner Group was originally controlled by Yevgeny Prigozhin, a close ally of Russian President Vladimir Putin, who died in August 2023. Despite Prigozhin’s death, the group’s operations continue under Kremlin backing.
Wagner Group’s Activities in Africa
Since arriving in CAR in late 2017, the Wagner Group has established a significant presence. Their activities include providing security services, engaging in combat operations, and controlling various business ventures. These ventures often involve illicit mining of gold and diamonds, as well as logging activities, which severely impact the local economy and environment. The group’s operations in CAR are part of a broader strategy to expand Russian influence across Africa at the expense of local sovereignty and stability.
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Details of the Sanctioned Companies
Mining Industries SARLU is a CAR-based mining company. It is heavily involved in the logistics and operational support of the Wagner Group. The company’s chief logistician, Valery Chekalov, who died alongside Prigozhin, used Mining Industries to lease aircraft from Kratol Aviation, a UAE-based aviation company. These aircraft are essential for the Wagner Group to move personnel and equipment throughout CAR and other parts of Africa. Moreover, Mining Industries has imported large quantities of chemicals such as hydrochloric acid, nitric acid, and sodium cyanide, which are commonly used in mining. These imports suggest the company’s involvement in the Wagner Group’s illicit mining activities.
Logistique Economique Etrangere SARLU
Logistique Economique Etrangere SARLU is another CAR-based company linked to the Wagner Group. In 2021, Logistique received numerous shipments of heavy materials from a Russian company named Limited Liability Company Broker Expert. Broker Expert is known for supporting Russian interests in Ukraine and Africa and was designated by OFAC on March 8, 2024. The heavy materials received by Logistique are believed to be used for Wagner Group’s mining operations, such as developing mining sites or building processing plants.
Reasons for the Sanctions
The U.S. government has sanctioned these companies to disrupt their support for the Wagner Group’s destabilizing activities.
Mining Industries SARLU Sanctions
Mining Industries SARLU was designated under Executive Order (E.O.) 14024. This executive order targets entities that support the Russian government’s malign activities. Mining Industries was sanctioned for being controlled by or acting on behalf of the Wagner Group, which is already sanctioned for its destabilizing operations.
Logistique Economique Etrangere SARLU Sanctions
Logistique Economique Etrangere SARLU was also designated under E.O. 14024. The company was sanctioned for providing material support to Broker Expert, another entity supporting the Wagner Group’s activities. By sanctioning Logistique, the U.S. aims to cut off another supply line to the Wagner Group’s illicit operations in CAR.
The Impact of Sanctions
The sanctions have significant implications for the designated companies:
Asset Freeze
All property and interests in property of the sanctioned companies within the United States or controlled by U.S. persons are frozen. This means the companies cannot access any assets or conduct transactions involving U.S. financial institutions.
U.S. citizens and businesses are generally prohibited from engaging in transactions with these sanctioned entities unless specifically authorized by OFAC. This severely limits the companies’ ability to operate internationally and cuts off vital financial resources.
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Extended Sanctions
Any entities that are owned 50% or more by the sanctioned companies are also subject to these restrictions, further isolating them from the global financial system.
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US. Strategy Against the Wagner Group
The U.S. has been actively targeting the Wagner Group and its affiliates to curb their global influence. The group has been involved in numerous conflicts and illicit activities, including:
– **Ukraine**: The Wagner Group has played a significant role in Russia’s military aggression in Ukraine, engaging in combat operations and supporting separatist movements.
– **Human Rights Abuses**: The group has committed egregious human rights violations, including mass executions, rape, and child abductions, particularly in CAR and Mali.
– **Resource Exploitation**: Wagner-linked companies have exploited natural resources across Africa, taking advantage of weak governance and regulatory environments.
International Sanctions
In addition to U.S. sanctions, the Wagner Group has been targeted by other countries, including Australia, Canada, Japan, the United Kingdom, and the European Union. These coordinated efforts aim to dismantle the group’s operations and limit its ability to operate freely.
The sanctions against Mining Industries SARLU and Logistique Economique Etrangere SARLU demonstrate the U.S. commitment to combating the destabilizing influence of the Wagner Group in Africa.
By targeting these companies, the U.S. aims to protect the sovereignty and stability of nations like the Central African Republic. This action is a part of a broader strategy to counteract Russian malign activities and promote global security and human rights.
