Policies & IssuesMay 03, 2023
From Mine to Met: Event Co-Chair Gives Platform to Responsibly Sourced GoldPolicies & 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.
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 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.”
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.
More on Policies & Issues
The Latest
IndependentsDec 23, 2024
Philadelphia 76ers’ Tyrese Maxey Stars in The 1916 Company’s New CampaignThe retailer’s “On the Clock” campaign celebrates how time, precision, and purpose come together.
EditorsDec 23, 2024
My Favorite Piece of the Week Jewels of 2024Associate Editor Natalie Francisco chose her 12 favorite Piece of the Week picks from the year gone by.
GradingDec 23, 2024
GIA Adds Filler Identification to Emerald ReportsLab clients have the option to request this addition on their emerald reports.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
