A comprehensive report titled “The Blood Gold Report,” released in December 2023, has shed light on the extensive and lucrative operations of the Wagner Group in Africa, revealing how these activities are financing Russia’s ongoing war in Ukraine and its global hybrid warfare infrastructure.
The Wagner Group, a Kremlin-financed private military company, has evolved into a complex network of private military contractors, disinformation campaigns, and corporate front companies since its inception in 2014.Initially supporting pro-Russian forces in Donbas, the group has expanded its operations across continents, particularly in Africa, where it has been active since 2017.
In countries like the Central African Republic (CAR), Sudan, and Mali, Wagner has deployed military trainers, mercenaries, and propaganda experts to support authoritarian regimes, drive instability, and commit human rights abuses. These operations are not just military but also economic, as Wagner secures lucrative contracts for natural resource extraction, especially gold.
The report estimates that Wagner and Russia have earned over US$2.5 billion from the trade of ‘blood gold’ since the full-scale invasion of Ukraine in February 2022. In CAR, Wagner has exclusive rights to the Ndassima mine, producing approximately US$290 million of gold annually. In Sudan, Wagner controls a major gold refinery and has become a dominant player in the gold market, smuggling out nearly US$2 billion in gold annually. In Mali, Wagner is paid a monthly retainer of US$10.8 million by the military junta, which in turn relies on revenue from Western mining companies.
These operations have been subject to international sanctions, but Wagner has developed complex smuggling routes and corporate subterfuge tactics to continue its trade. In Mali, the system allows Wagner to remain one degree removed from gold production, with multinational mining companies converting gold into cash for the Malian military junta without triggering sanctions.
The report’s authors emphasize that Wagner’s ultimate goal is to increase its clients’ dependence on its forces, thereby securing a long-term revenue stream for the Kremlin and fostering authoritarianism and instability as part of Russia’s wider geopolitical strategy.
Following the death of Wagner’s leader Yevgeny Prigozhin, the group has come under the control of the Russian State, but its focus on Africa and blood gold operations remains unchanged.
The Blood Gold report said, “The ultimate objective of Wagner’s playbook is to increase its clients’ dependence on Wagner forces to stay in power, thereby securing a long-term revenue stream for the Kremlin and fostering authoritarianism and instability throughout the region as part of Russia’s wider geopolitical strategy to distract and bog down the democratic West.”
The report calls for widened sanctions, stringent supply chain controls, demanding responsibility from international mining companies, designating Wagner as a terrorist group, and deepening collaboration between allies to cut off the Kremlin’s blood gold funding stream.
The Wagner Group, a Kremlin-financed private military company, has evolved into a complex network of private military contractors, disinformation campaigns, and corporate front companies since its inception in 2014.Initially supporting pro-Russian forces in Donbas, the group has expanded its operations across continents, particularly in Africa, where it has been active since 2017.
In countries like the Central African Republic (CAR), Sudan, and Mali, Wagner has deployed military trainers, mercenaries, and propaganda experts to support authoritarian regimes, drive instability, and commit human rights abuses. These operations are not just military but also economic, as Wagner secures lucrative contracts for natural resource extraction, especially gold.
The report estimates that Wagner and Russia have earned over US$2.5 billion from the trade of ‘blood gold’ since the full-scale invasion of Ukraine in February 2022. In CAR, Wagner has exclusive rights to the Ndassima mine, producing approximately US$290 million of gold annually. In Sudan, Wagner controls a major gold refinery and has become a dominant player in the gold market, smuggling out nearly US$2 billion in gold annually. In Mali, Wagner is paid a monthly retainer of US$10.8 million by the military junta, which in turn relies on revenue from Western mining companies.
These operations have been subject to international sanctions, but Wagner has developed complex smuggling routes and corporate subterfuge tactics to continue its trade. In Mali, the system allows Wagner to remain one degree removed from gold production, with multinational mining companies converting gold into cash for the Malian military junta without triggering sanctions.
The report’s authors emphasize that Wagner’s ultimate goal is to increase its clients’ dependence on its forces, thereby securing a long-term revenue stream for the Kremlin and fostering authoritarianism and instability as part of Russia’s wider geopolitical strategy.
Following the death of Wagner’s leader Yevgeny Prigozhin, the group has come under the control of the Russian State, but its focus on Africa and blood gold operations remains unchanged.
The Blood Gold report said, “The ultimate objective of Wagner’s playbook is to increase its clients’ dependence on Wagner forces to stay in power, thereby securing a long-term revenue stream for the Kremlin and fostering authoritarianism and instability throughout the region as part of Russia’s wider geopolitical strategy to distract and bog down the democratic West.”
The report calls for widened sanctions, stringent supply chain controls, demanding responsibility from international mining companies, designating Wagner as a terrorist group, and deepening collaboration between allies to cut off the Kremlin’s blood gold funding stream.