Russia fuels war chest with $2.5 billion African gold trade
Since the start of the invasion of Ukraine, Russia has exported gold worth $2.5 billion from Africa. According to a report by the World Gold Council, the money obtained in this way supports the Kremlin's war machine.
Russia acquires gold from small artisanal mines in Burkina Faso, the Central African Republic, Eritrea, Guinea, Libya, Mali, and Sudan.
"The mysterious death of Yevgeny Prigozhin, the head of the Wagner Group, in a plane crash in August 2023, has not halted the plundering of natural resources by Russia globally—from Libya to the Central African Republic. Instead, the Kremlin has taken the opportunity to regain control over these lucrative enterprises," the authors of the report "Silence is Golden" stated.
Gold from Africa is smuggled to countries in the Middle East, mainly the United Arab Emirates, where, after being refined and mixed with legally obtained metal, it is sold in Dubai and then distributed to markets worldwide. Profits from these transactions are transferred to Russia.
"On the battlefields of Ukraine, as the fight for control over territory teeters, it is worth noting the lack of coordinated political will to stop the illegal flow of profits from gold resource exploitation in Africa to the Russian war machine," noted the World Gold Council (WGC) report.
"Russia's blood gold"
The countries most exploited by the Kremlin are Mali, the Central African Republic, and Sudan. "It is in these countries that the trade in Russia's blood gold has recently intensified," said Jessica Berlin, co-author of another report on the use of gold for waging wars, in a conversation with NPR.
Just a few days ago, as a warning, local gold and diamond traders were robbed and brutally murdered. The perpetrators placed the severed head between the legs of the deceased, and photos of the ritualistically positioned corpse were shared online.
Local media also reported the killing of at least 20 gold miners by Wagner Group mercenaries in June this year in small mines in Koki, located in the Ouham prefecture. After the massacre, they gathered the villagers and declared that anyone mining gold without their permission would be executed.
In Burkina Faso, the military junta granted the Russian company Nordgold licenses to exploit four of the largest gold mines. In Mali, after a military coup, mercenaries took over the largest mine in Intahaka in the Gao region. Russia is also increasing cooperation with Mali in extracting oil, gas, uranium, and lithium.
Sanctions aren't working
Nordgold, owned by Alexei Mordashov, also mines gold in Guinea. The country is governed by a military junta led by Colonel Mamady Doumbouya, who attempts to balance Russia and the West. The Russian mining company has been exploiting one of the country's largest gold mines in Lefa for a decade.
Russia's increased access to mining in Africa, particularly gold deposits, enables Moscow to finance the war in Ukraine and strengthens its economy and mitigates the effects of Western sanctions imposed against it.
