Policies & Issues

U.S. Sanctions Gold Cos. Allegedly Tied to Russian Mercenary Group

Policies & IssuesJun 29, 2023

U.S. Sanctions Gold Cos. Allegedly Tied to Russian Mercenary Group

OFAC sanctioned four companies it claims are helping fund the Wagner Group, the organization that just attempted a coup in Russia.

Stock photo of gold bars
On Tuesday, the U.S. Treasury Department announced sanctions against Midas Resources SARLU, Diamville SAU, Industrial Resources General Trading, Limited Liability Company DM, and Andrey Nikolayevich Ivanov. The department alleges these four companies and one individual are involved in illicit gold dealings that help fund the Wagner Group. (Stock photo)
Washington, D.C.—The U.S. Treasury Department’s Office of Foreign Assets Control has announced sanctions against four gold companies it says are connected to Russia’s Wagner Group and its leader, Yevgeniy Prigozhin.

The Wagner Group is a government-backed network of mercenaries (fighters for hire) that has been heavily involved in Russia’s invasion of Ukraine, including the capture of the city of Bakhmut in eastern Ukraine.

In recent months, though, the relationship between Prigozhin and the Russian government has soured, with Prigozhin accusing the country’s military leadership of incompetence and claiming they were withholding ammunition from his fighters.

On Saturday, the Wagner Group staged an insurrection that was quickly de-escalated but has raised questions about Russian President Vladimir Putin’s ability to hold onto power.

Prigozhin and the Wagner Group already are under U.S. sanction.

On Tuesday, OFAC announced sanctions against four companies and one individual it claims are involved in illicit gold dealings that fund the Wagner Group. 

They are: 
— Midas Resources SARLU, a company based in the Central African Republic that is affiliated with Prigozhin and has mining concessions and licenses for sites where precious metals and gemstones are mined; 
— Diamville SAU, another CAR-based company controlled by Prigozhin; 
— Industrial Resources General Trading, a Dubai, United Arab Emirates-based industrial goods distributor that allegedly has provided financial support to Prigozhin through its business dealings with Diamville; and
— Limited Liability Company DM (also known as OOO DM), a Russia-based firm that allegedly participated in a gold selling scheme.

OFAC also sanctioned one individual, Andrey Nikolayevich Ivanov, a Russian national it says is an executive in the Wagner Group. 

“The Wagner Group funds its brutal operations in part by exploiting natural resources in countries like the Central African Republic and Mali,” said Brian E. Nelson, the Treasury Department’s undersecretary for Terrorism and Financial Intelligence. 

“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.”

 Related stories will be right here … 

The U.S. Treasury Department announced the sanctions the same day a group of federal agencies, including the State Department and the Department of Homeland Security, published a lengthy advisory on gold from sub-Saharan Africa that U.S. State Department’s Brad Brooks-Rubin described as “unique.”

Available to read in full online, the alert calls attention to the “increasingly concerning reporting” on illicit actors, like the Wagner Group, exploiting weaknesses in the gold supply chain across sub-Saharan Africa to finance their activities.

Industry participants, “should be prepared for increased U.S. government attention to the relationship between gold and these groups’ revenue streams and should be prepared for the possibility that U.S. sanctions could be used to disrupt these groups’ operations,” the alert states.

It notes the importance of companies doing their due diligence when it comes to sourcing gold and reporting publicly on their efforts whenever possible.

The alert also calls on U.S. individuals and entities that are involved in the gold trade to support responsible investment in both large-scale gold mining operations in Africa as well as its artisanal and small-scale gold mining sector (ASGM), which employs an estimated 10 million to 25 million people.

The advisory includes a list of three non-governmental organizations working to improve Africa’s ASGM sector and the lives of the people who depend on it.

They are: Impact (formerly Partnership Africa Canada), an NGO that specializes in artisanal and small-scale mining in Africa; the Alliance for Responsible Mining, which works to better the lives of artisanal and small-scale miners worldwide through capacity building and improved market access; and the Artisanal Gold Council, which focuses on training, education, and capacity-building programs, as well as guiding sector governance. 

The Latest

Sriram “Ram” Natarajan
GradingAug 22, 2025
Former Head of GIA India Promoted to Oversee Global Operations

Sriram “Ram” Natarajan is now GIA’s senior vice president of laboratory operations and is based out of the lab’s headquarters in Carlsbad.

Retrouvaí Diamond Vein Bond Collar
CollectionsAug 22, 2025
Piece of the Week: Retrouvaí’s ‘Diamond Vein Bond’ Collar

The one-of-a-kind collar represents the beauty of imperfection and the strength to rebuild.

Kendra Scott
MajorsAug 22, 2025
Kendra Scott Returns as CEO of Her Jewelry Empire

Three C-suite executives, including former CEO Tom Nolan, have resigned as part of what the company describes as a “transition.”

japac-btyb.png
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key Issues

Jewelers of America is leading the charge to protect the industry amidst rising economic threats.

Claire’s storefront
MajorsAug 21, 2025
Claire’s Finds Buyer, Could Save up to 950 Stores

The retailer, which recently filed Chapter 11, inked a deal to sell its North American business and intellectual property.

Weekly QuizAug 22, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Target CEO Brian Cornell and COO Michael Fiddelke
MajorsAug 21, 2025
Target Names New CEO as Sales Continue to Lag

Target CEO Brian Cornell will step down in February and be replaced by the company’s chief operating officer, Michael Fiddelke.

Tiffany & Co. Pop Up at U.S. Open
MajorsAug 21, 2025
Tiffany & Co. Pops Up at 2025 US Open

The pop-up will display this year's Tiffany & Co. Singles Championship trophies along with a diamond-encrusted tennis racket and ball.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Bellman’s Jewelers The Truthful Jeweler Alex Bellman
IndependentsAug 20, 2025
Bellman’s Jewelers Opens Second Store After COO's TikTok Takes Off

The New Hampshire-based store has expanded to Boston, propelled by the success of Alex Bellman’s TikTok page, “The Truthful Jeweler.”

Stock image of police cars with lights flashing
CrimeAug 20, 2025
Another CA Jewelry Store Rammed With Car, Robbed

The latest incident happened Monday at a store in Oakland, California, continuing a pattern JSA first warned about last month.

Oris New York Harbor Limited Edition II Watch
WatchesAug 20, 2025
Oris Launches Watch Benefiting NYC Harbor Oyster Restoration

The new aqua green New York Harbor Limited Edition II is the watchmaker’s second collaboration with the Billion Oyster Project.

Jewelers for Children logo
Events & AwardsAug 20, 2025
Take the Jewelers for Children ‘Trinity of Purpose’ Challenge

Participants who attend any three Rings of Strength events will be awarded a special medal.

Lulo Rose pink diamond
SourcingAug 19, 2025
Dubai’s Jemora Group Buys Diamond Miner Lucapa

The investment company, founded by Dev Shetty, has acquired the struggling miner and its assets, including the Lulo mine in Angola.

National Jeweler columnist and jewelry sales expert Peter Smith
ColumnistsAug 19, 2025
Peter Smith: The Arrival Fallacy and Jewelry Retail

Smith shares wisdom he gleaned from a podcast he was listening to one morning while being walked by his dog, a Malshi named Sophie.

Fake Van Cleef & Arpels Alhambra earrings
CrimeAug 19, 2025
Customs Seizes 7,300 Pairs of Fake ‘Alhambra’ Earrings

The counterfeit Van Cleef & Arpels jewels would have been worth more than $30 million if genuine.

MJSA Logo
MajorsAug 19, 2025
MJSA Apprenticeship Program Is Nationally Recognized

The MJSA Mentor & Apprenticeship Program received the Registered Apprenticeship Program designation by the U.S. Department of Labor.

Masaki Obu
WatchesAug 19, 2025
Casio America Names New Timepiece Division Manager

Casio executive and watch enthusiast Masaki Obu is the new general manager of its U.S. timepiece division.

Michael Barabash and husband Raymond Cuadrado
MajorsAug 18, 2025
Verragio’s Michael Barabash, a ‘Kind Soul,’ Dies at 58

Barabash, Verragio’s client relations representative, was a vital member of the team and is remembered as being warm and full of life.

John Hardy Dot Coil Necklace and Dot Hoop Earrings
CollectionsAug 18, 2025
John Hardy’s New ‘Dot’ Collection Is on Point

Originally introduced in 1992, the “Dot” collection is back with a capsule featuring five archival designs and three new creations.

IJO Vendor of the Year Allison-Kaufman
Events & AwardsAug 18, 2025
IJO Announces 2025 Vendor of the Year

Allison-Kaufman has received the honor for the fourth year in a row.

Image of Winona Ryder and Iman from Pandora’s Be Love marketing campaign
FinancialsAug 15, 2025
In Q2 Results, Pandora Talks Tariffs, Q4 Plans

The company had a solid second quarter, with sales of non-charm jewelry outpacing sales of pieces in its core collections.

Taylor Swift Etho Maria ruby earrings The Life of a Showgirl TS12
EditorsAug 15, 2025
Piece of the Week: Etho Maria’s Showgirl-Approved Ruby Drop Earrings

Taylor Swift dons the vibrant pair in new promotional imagery for her upcoming album, “The Life of a Showgirl,” set to release in October.

Audemars Piguet Starwheel Watch
WatchesAug 15, 2025
Audemars Piguet Acquires Majority Stake in Manufacturer

Its investment in micromechanics expert Inhotec will preserve skills essential to the watchmaking industry as a whole, said the company.

Nicolette Bianchi
MajorsAug 15, 2025
Rio Grande Names New Marketing Director

Nicolette Bianchi joins the wholesale provider with more than 15 years of cross-industry experience in marketing and product development.

Pippa Small Myanmar Fish Cluster
CollectionsAug 14, 2025
In Midst of ‘Sardine Girl Summer,’ Pippa Small Looks to ‘Flounder Fall’

Her new “Ocean” collection was inspired by Myanmar’s traditional articulated fish jewelry, with depictions of flounder, catfish, and more.

Casio America CEO Yusuke Suzuki
MajorsAug 14, 2025
Casio America Names New CEO

Longtime Casio executive Yusuke Suzuki is the new president and CEO of Casio’s U.S. subsidiary.

LA Trading Day
SourcingAug 14, 2025
West Coast Orgs to Host Trading Event, Mixer in LA

The full-day sourcing and networking event, slated for Aug. 18, will be followed by the fifth annual Mega Mixer Summer Soirée.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy