Understanding the Impact of US Sanctions on Wagner and its Affiliates

The US Treasury Department has imposed sanctions on gold and diamond mining companies connected to the Wagner group in Mali and the Central African Republic (CAR) after the group's founder, Yevgeny Prigozhin, attempted to stage a mutiny in Russia. While Wagner earns some money from its illicit mining activities, its significant funding primarily comes from the Russian government. The mining operations in Africa serve a political purpose of state capture rather than a financial one. The sanctions provide evidence of Wagner's connections and call out the regimes that enable the group. The full extent of Wagner's funding remains unclear, but the future of Prigozhin's forces is weakened and complicated. Russia's foreign policy goals in Africa remain the same, and it still needs proxy forces to continue its trouble-making approach.